By Rebecca Melvin
New York, Oct. 2 - Regal Lifestyle Communities Inc. priced C$25 million of five-year convertible debentures to yield 6% with an initial conversion premium of 37%, according to a news release.
Regal also priced C$12.5 million of common shares, or 1.76 million shares at C$7.10 per share, in a private placement.
The convertible unsecured subordinated debentures were sold on a bought-deal basis via a syndicate of underwriters co-led by CIBC World Markets Corp. and TD Securities.
The initial conversion price is C$9.75 per share.
Proceeds from both deals will be used to fund part of the acquisition of four retirement homes in southern Ontario and for general corporate purposes.
Toronto-based Regal Lifestyle owns, operates and manages retirement communities in Canada.
| Issuer: | Regal Lifestyle Communities Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$25 million
|
| Concurrent offering: | C$12.5 million of common shares at C$7.10 per share
|
| Maturity: | Dec. 31, 2018
|
| Bookrunners: | CIBC World Markets Corp., TD Securities
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 37%
|
| Conversion price: | C$9.75
|
| Pricing date: | Oct. 1
|
| Settlement date: | Oct. 9
|
| Stock reference price: | C$7.10
|
| Stock price: | Toronto: C$7.84 at close Oct. 1
|
| Distribution: | Short form prospectus in Canada
|
| Market capitalization: | $149 million
|
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