By Cristal Cody
Prospect News, Sept. 11 - Artis Real Estate Investment Trust on Tuesday sold an upsized $75 million of series C cumulative rate reset preferred trust units due March 31, 2018 to yield an annual dividend of 5.25%.
The deal included 3 million units priced at $25 each.
The REIT upsized the U.S. dollar-denominated sale announced on Monday from $50 million.
RBC Capital Markets Corp., CIBC World Markets Inc. and Macquarie Capital Markets Canada Ltd. were the lead managers.
The units are callable on March 31, 2018 and on March 31 of every fifth year thereafter.
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. government bond yield and 446 basis points.
Unitholders 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. Holders of series D units will receive a floating cumulative preferential distribution at a rate equal to the sum of the then three-month Treasury bill yield plus a spread of 446 bps.
Proceeds from the sale will be used to repay debt, to fund future acquisitions and for general trust purposes.
The Winnipeg, Man.-based trust holds investments in industrial, retail and office properties in Canada and the United States.
| Issuer: | Artis Real Estate Investment Trust
|
| Amount: | $75 million
|
| Maturity: | March 31, 2018
|
| Securities: | Series C cumulative rate reset preferred trust units
|
| Bookrunners: | RBC Capital Markets Corp., CIBC World Markets Inc. and Macquarie Capital Markets Canada Ltd.
|
| Dividend: | 5.25%; resets on March 31, 2018 and every five years thereafter at five-year U.S. government bond yield plus 446 bps
|
| Price: | $25 per unit
|
| Call option: | On March 31, 2018 and on March 31 of every fifth year thereafter
|
| Pricing date: | Sept. 11
|
| Settlement date: | Sept. 18
|
| Distribution: | Rule 144A, Regulation S
|
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