By Evan Weinberger
New York, July 23 - Primaris Retail REIT priced C$100 million of convertible debentures due Aug. 1, 2014 with a 5.85% coupon and a 17.75% initial conversion premium. At the same time, Primaris is issuing 3.134 million units at a price of C$19.15, equal to approximately C$60 million.
RBC Capital Markets and CIBC World Markets Inc. are joint bookrunners of the Regulation S transaction. There is an over-allotment option of C$15 million of debentures and 470,100 units.
The debentures have a conversion price of C$22.55.
The debentures are callable after three years subject to a 125% hurdle. They are fully callable in the last two years. There are no put options.
Primaris Retail is a Toronto-based REIT specializing in Canadian mid-market retail centers. The REIT plans to use the proceeds to repay indebtedness incurred under the REIT's operating and interim credit facilities, to fund future property acquisition, to fund redevelopment of the REIT's existing properties and for general corporate purposes.
Issuer: Primaris Retail REIT
Issue: Convertible debentures
Amount: C$100 million
Greenshoe: C$15 million
| Maturity date: | Aug. 1, 2014
|
| Coupon: | 5.85%
|
| Price: | Par
|
| Yield: | 5.85%
|
| Conversion price: | C$22.55
|
| Conversion premium: | 17.75%
|
| Call: | After three years subject to 125% hurdle; fully callable in last two years
|
| Put: | None
|
| Pricing date: | July 23
|
| Bookrunners: | RBC Capital Markets and CIBC World Markets Inc.
|
| Distribution: | Regulation S
|
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