By Rebecca Melvin
New York, April 30 - Retrocom Mid-Market Real Estate Investment Trust priced C$25 million of extendible convertible debentures at par on a bought-deal basis to yield 5.5% with in initial conversion premium of 43%, according to a news release.
Retrocom also priced C$50 million of subscription receipts at C$5.25 per subscription receipt. Both deals were made in connection with financing an acquisition of a portfolio of properties from First Capital Realty Inc. for C$193 million.
The debentures will have an initial maturity date of July 31, 2013, which will be extended to June 30, 2020 upon the acquisition closing. The notes are freely convertible at a conversion price of about C$7.20 per unit.
The convertible debt was bought by a syndicate of underwriters led by TD Securities Inc. There is a C$3.75 million greenshoe.
In addition to the convertibles and subscription receipts, Retrocom has agreed to issue upon closing of the acquisition C$7.5 million of units of the REIT at the same offering price as the subscription receipts and C$7.5 million of convertible unsecured subordinated debentures at the same terms as the debentures issued in the offering.
Retrocom will also obtain a C$90 million bridge loan from the Toronto-Dominion Bank to finance the deal.
The offering is expected to close May 22. The acquisition is expected to close June 4.
Based in Toronto, Retrocom is a trust that focuses on owning and acquiring mid-market commercial properties in Canadian cities.
| Issuer: | Retrocom Mid-Market Real Estate Investment
|
| Issue: | Extendible convertible debentures
|
| Amount: | C$25 million
|
| Greenshoe: | C$3.75 million
|
| Maturity: | July 31, 2013, extending to July 30, 2020
|
| Concurrent offering: | C$50 million of subscription rights
|
| Bookrunners: | Syndicate led by TD Securities Inc.
|
| Coupon: | 5.5%
|
| Price: | Par, C$1,000
|
| Conversion premium: | 43%
|
| Conversion price: | C$7.20 per unit
|
| Announcement date: | April 30
|
| Settlement date: | May 22
|
| Unit symbol: | Toronto: RMM.UN
|
| Unit reference price: | C$5.50
|
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