By Kenneth Lim
Boston, Feb. 15 - Temple Real Estate Investment Trust on Thursday closed its maximum C$14 million of five-year convertible subordinated debentures on Thursday, at a coupon of 7.5% and an initial conversion premium of 15%.
The convertibles were offered on a best-efforts basis, with a minimum of C$10 million and a maximum of C$14 million. There is an over-allotment option for a further C$1.68 million.
Temple concurrently sold C$29 million of its common stock, or 5.8 million units, at C$5 apiece.
Blackmont Capital Inc. was the lead placement agent of the convertible and stock offerings, which were sold under Regulation S.
The debentures are non-callable for the first three years. They are callable in the fourth year subject to a hurdle at 125% of the conversion price and are freely callable after that. There are no puts.
Temple, a Winnipeg, Man.-based real estate investment trust that focuses on hotel properties, will use the proceeds of the deals to buy additional hotel properties and assets and for general purposes.
| Issuer: | Temple Real Estate Investment Trust
|
| Issue: | Convertible subordinated debentures
|
| Bookrunner: | Blackmont Capital
|
| Amount: | C$14 million
|
| Greenshoe: | C$1.68 million
|
| Maturity: | March 31, 2012
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion premium: | 15%
|
| Conversion price: | C$5.75
|
| Conversion ratio: | 17.3913
|
| Call protection: | Non-callable before March 31, 2010; callable subject to 125% hurdle from March 31, 2010 to March 30, 2011; thereafter freely callable
|
| Puts: | None
|
| Pricing date: | Dec. 28
|
| Settlement date: | Feb. 15
|
| Distribution: | Regulation S
|
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