By Kenneth Lim
Boston, July 17 - Canada's Sunrise Senior Living Real Estate Investment Trust on Monday priced C$50 million of five-year convertible subordinated unsecured debentures at a coupon of 6.4% at an initial conversion premium of 16%.
The debentures were offered at par and have an initial conversion price of C$12.18. Sunrise stock closed at C$10.50 on the Toronto Stock Exchange Friday.
There is an over-allotment option for a further C$7.5 million.
TD Securities Inc. was the bookrunner for the offering, which is not offered in the United States.
The debentures are not callable for the first three years. They are callable in the fourth year subject to a 125% price hurdle, and freely callable in the final year.
Sunrise is a Toronto-based owner of senior living communities in major metropolitan markets in Canada and the United States. It will use the proceeds of the deal to reduce debt and for general purposes.
| Issuer: | Sunrise Senior Living Real Estate Investment Trust
|
| Issue: | Convertible subordinated unsecured debentures
|
| Bookrunner: | TD Securities Inc.
|
| Amount: | C$50 million
|
| Greenshoe: | C$7.5 million
|
| Maturity: | Dec. 31, 2011
|
| Coupon: | 6.4%
|
| Price: | Par
|
| Yield: | 6.4%
|
| Conversion premium: | 16%
|
| Conversion price: | C$12.18
|
| Conversion ratio: | 82.1018
|
| Call protection: | Non-callable 3 years, subject to 125% hurdle in year 4, freely callable in year 5
|
| Pricing date: | July 17
|
| Settlement date: | Aug. 3
|
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