Artis REIT plans U.S. dollar-denominated $50 million preferred units

By Cristal Cody

Prospect News, Sept. 10 - Artis Real Estate Investment Trust announced on Monday that it plans to raise $50 million in a U.S. dollar-denominated offering of cumulative-rate reset preferred trust units due March 31, 2018.

The series C units will price at $25 per unit.

RBC Capital Markets Corp., CIBC World Markets Inc. and Macquarie Capital Markets Canada Ltd. are the lead managers.

The sale includes an over-allotment option of up to an amount equal to 15% of the number of series C units sold.

The distribution rate will be reset on March 31, 2018 and every five years thereafter at a rate equal to the sum of the then five-year U.S. Treasury bond yield and a spread that will be set at pricing.

The units are redeemable by Artis, at its option, on March 31, 2018 and on March 31 of every fifth year thereafter.

Holders of series C units will have the right to reclassify all or any part of their units as series D cumulative floating-rate preferred trust units on March 31, 2018 and on March 31 of every fifth year thereafter.

Artis REIT plans to use the proceeds of the sale to repay debt, fund future acquisitions and for general trust purposes.

The Winnipeg, Manitoba-based trust holds investments in industrial, retail and office properties in Canada and the United States.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.