By Rebecca Melvin
New York, July 18 - Temple Real Estate Investment Trust sold an upsized C$40 million of five-year convertible debentures in a bought deal at par to yield 7.25% with an initial conversion premium of 30%, according to a news release.
The Regulation S deal was initially C$30 million in size. But C$10 million of debentures was added to the deal, priced by a syndicate of agents led by National Bank Financial Inc. and including Laurentian Bank Securities Inc., Raymond James Ltd., Dundee Securities Corp., Mackie Research Capital Corp., Desjardins Securities Inc., MacDougall, MacDougall & MacTier Inc., and Macquarie Capital Markets Canada Ltd.
The greenshoe was upsized to C$6 million from C$4.5 million.
As previously reported, proceeds are earmarked to fund additional acquisitions of income-producing hotel properties, to repay existing debt, for general trust purposes and for working capital.
The public offering is still subject to regulatory approval and is being distributed in Canada. It is expected to close Aug. 8.
Temple is a real estate investment trust based in Winnipeg, Man. It owns hotel properties and related assets.
| Issuer: | Temple Real Estate Investment Trust
|
| Issue: | Convertible debentures
|
| Amount: | C$40 million, upsized from C$30 million
|
| Greenshoe: | C$6 million, upsized from C$4.5 million
|
| Maturity: | Sept. 30, 2017
|
| Bookrunners: | Led by National Bank Financial Inc. and including Laurentian Bank Securities Inc., Raymond James Ltd., Dundee Securities Corp., Mackie Research Capital Corp., Desjardins Securities Inc., MacDougall, MacDougall & MacTier Inc., and Macquarie Capital Markets Canada Ltd.
|
| Coupon: | 7.25%
|
| Price: | Par
|
| Yield: | 7.25%
|
| Conversion premium: | 30%
|
| Conversion price: | C$8.00
|
| Conversion ratio: | 125.00 units
|
| Pricing date: | July 17
|
| Settlement date: | Aug. 8
|
| Unit symbol: | TR.UN
|
| Unit price: | C$6.15 at close July 17
|
| Distribution: | Short form prospectus in Canada; Regulation S
|
| Market capitalization: | C$153.96 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
