By Abigail W. Adams
Portland, Me., March 20 – Atrium Mortgage Investment Corp. priced C$25 million of six-year convertible unsecured subordinated debentures after the market close on Wednesday at par with a coupon of 5.6% and an initial conversion premium of 11%, according to a company news release.
TD Securities Inc. and RBC Capital Markets led the syndicate of underwriters for the bought deal, which carries a greenshoe of C$3.75 million.
The debentures are non-callable until March 31, 2022 and then subject to a 125% hurdle. The notes become freely callable after March 31, 2024.
Proceeds will be used to repay Atrium’s 6.25% convertible notes due March 31, 2019 and repay debt under its revolving credit facility.
Atrium Mortgage is a Toronto-based residential and commercial mortgage lender.
| Issuer: | Atrium Mortgage Investment Corp.
|
| Securities: | Convertible unsecured subordinated debentures
|
| Amount: | C$25 million
|
| Greenshoe: | C$3.75 million
|
| Maturity: | March 31, 2025
|
| Bookrunners: | TD Securities Inc. and RBC Capital Markets
|
| Coupon: | 5.6%
|
| Price: | Par
|
| Yield: | 5.6%
|
| Conversion premium: | 11%
|
| Conversion price: | C$14.75
|
| Call options: | Non-callable until March 31, 2022 and then subject to a 125% hurdle until March 31, 2024 when they become freely callable
|
| Pricing date: | March 20
|
| Settlement date: | March 29
|
| Distribution: | Off shelf
|
| Stock symbol: | TSX: AI
|
| Stock price: | C$13.28
|
| Market capitalization: | C$480.41 million
|
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