By Cristal Cody
Prospect News, March 12 - Artis Real Estate Investment Trust said on Tuesday it priced an upsized C$100 million offering of cumulative rate reset preferred trust units with a 4.75% annual dividend for the initial fixed-rate period ending Sept. 30, 2018.
The REIT sold 4 million of the series E units (DBRS: Pfd-3) at C$25 each.
The deal was upsized from C$50 million, or 2 million units.
RBC Capital Markets and CIBC World Markets Inc. were the lead managers.
The units are redeemable by Artis at its option on Sept. 30, 2018 and on Sept. 30 of every fifth year thereafter.
The rate will reset on Sept. 30, 2018 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 330 basis points.
Unit holders will have the right to reclassify all or any part of the series E units as series F cumulative floating-rate preferred trust units on Sept. 30, 2018 and on Sept. 30 of every fifth year thereafter. Series F unit holders will be entitled to receive a floating cumulative preferential distribution at a rate equal to the sum of the then 90-day Government of Canada treasury bill yield plus 330 bps.
The Winnipeg, Man.-based real estate investment trust plans to use the proceeds to repay debt, to fund future acquisitions and for general trust purposes.
| Issuer: | Artis Real Estate Investment Trust
|
| Amount: | C$100 million
|
| Maturity: | Perpetual
|
| Securities: | Cumulative rate reset preferred trust units
|
| Bookrunners: | RBC Capital Markets and CIBC World Markets Inc.
|
| Dividend: | Fixed at 4.75% until Sept. 30, 2018, then five-year Government of Canada bond yield plus 330 bps
|
| Price: | C$25
|
| Call feature: | Sept. 30, 2018 and on Sept. 30 of every fifth year thereafter
|
| Pricing date: | March 12
|
| Settlement date: | March 21
|
| Rating: | DBRS: Pfd-3
|
| Distribution: | Canada
|
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