New York, July 15 - Retrocom Mid-Market Real Estate Investment Trust said it has priced a C$20 million offering of convertible unsecured subordinated debentures due July 31, 2012.
The securities pay a coupon of 7.5% and convert at a price of C$9.25 per trust unit.
Proceeds from the convertibles, along with funds raised by an offering of C$51.5 million of trust units, will be used to fund the cash portion of Retrocom's acquisition of seven properties from RioCan Real Estate Investment Trust.
Retrocom is a Toronto-based real estate investment trust that owns mid-market commercial properties.
CIBC World Markets Inc. was lead manager for the convertibles, which were only offered in Canada.
| Issuer: | Retrocom Mid-Market Real Estate Investment Trust
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$20 million
|
| Maturity: | July 31, 2012
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion premium: | 10.6%
|
| Conversion price: | C$9.25
|
| Conversion ratio: | 108.108
|
| Soft call: | July 31, 2009 onwards at par subject to 125% hurdle
|
| Hard call: | July 31, 2011 onwards at par
|
| Lead manager: | CIBC World Markets Inc.
|
| Pricing date: | July 14, after close
|
| Settlement date: | July 26
|
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