By Cristal Cody
Tupelo, Miss., July 18 - Artis Real Estate Investment Trust said on Thursday that it sold C$75 million of cumulative rate reset preferred trust units to yield 5% for the initial fixed-rate period to July 31, 2019.
The trust sold 3 million units of the series G stock (DBRS: Pfd-3 (low)) at C$25.00 per unit.
RBC Capital Markets and CIBC World Markets Inc. were the lead managers.
The deal includes an over-allotment option of C$11.25 million, or 450,000 units.
The dividend will be reset on July 31, 2019 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield and 3.13%.
Artis may redeem the units at its option on July 31, 2019 and on July 31 of every fifth year thereafter.
Holders will have the right to reclassify any or all of their units as series H cumulative floating-rate preferred trust units.
Artis, which announced the offering in conjunction with the agreement to acquire office buildings in Denver and Scottsdale, Ariz., intends to use the proceeds 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: | C$75 million (3 million units)
|
| Greenshoe: | C$11.25 million
|
| Maturity: | July 31, 2019
|
| Securities: | Cumulative rate reset preferred trust units
|
| Bookrunners: | RBC Capital Markets, CIBC World Markets Inc.
|
| Dividend: | 5%
|
| Price: | C$25.00 per unit
|
| Call feature: | July 31, 2019 and on July 31 of every fifth year thereafter
|
| Pricing date: | July 18
|
| Settlement date: | July 29
|
| Rating: | DBRS: Pfd-3 (low)
|
| Distribution: | Canada
|
© 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.
