By Rebecca Melvin
New York, Sept. 14 - Primaris Retail REIT has priced C$75 million of six-year convertibles on a bought-deal basis at par to yield 6.3% with an initial conversion premium of 19%, according to a news release.
There is an over-allotment option to purchase up to an additional C$11.25 million of debentures.
The issue is being made via a syndicate of underwriters co-led by RBC Capital Markets Corp. and CIBC World Markets Inc., with RBC Capital Markets acting as bookrunner.
Proceeds will be used to fund future property acquisitions, to fund the redevelopment of the REIT's existing properties and for general trust purposes.
The debentures, which mature Sept. 30, 2015, are convertible into trust units of Primaris Retail at C$16.70 per trust unit.
The offering is expected to close Oct. 6 and is subject to normal regulatory approvals.
Based in Toronto, Primaris Retail owns 26 income-producing properties totaling about 9.3 million square feet, located in Canada.
| Issuer: | Primaris Retail REIT
|
| Issue: | Convertible unsecured subordinated debentures
|
| Joint lead managers: | RBC Capital Markets Corp. and CIBC World Markets Inc.
|
| Amount: | C$75 million
|
| Greenshoe: | C$11.25
|
| Maturity: | Sept. 30, 2015
|
| Coupon: | 6.3%
|
| Price: | Par
|
| Yield: | 6.3%
|
| Conversion premium: | 19%
|
| Conversion price: | C$16.70
|
| Pricing date: | Sept. 14
|
| Settlement date: | Oct. 6
|
| Distribution: | Public offering
|
| Stock symbol: | TSX: PMZ.UN
|
| Stock reference price: | C$14.00
|
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