First Capital Realty plans to redeem 6.25% convertibles due 2016

By Marisa Wong

Madison, Wis., Aug. 16 - First Capital Realty Inc. said its board of directors has approved the redemption of the remaining principal amount of its 6.25% convertible subordinated debentures due Dec. 31, 2016.

Under the terms of the debentures, the company may elect to redeem the 6.25% debentures in whole or in part on or after Sept. 30 and up to Sept. 30, 2014, provided the volume-weighted average trading price of First Capital's shares on the Toronto Stock Exchange is at least 125% of the conversion price for the 20 consecutive trading days ending five days prior to notice of redemption. With that requirement satisfied, the company said it sent a formal notice of redemption on Thursday.

As of Aug. 16, the outstanding principal amount of the convertibles is $66,599,000.

The debentures will be redeemed on Sept. 30 at par plus accrued interest to the redemption date. Payment will occur on Oct. 1.

The company plans to fund the redemption with proceeds from the issuance of common stock.

Holders can still convert the debentures at the current conversion price of $14.313 until 5 p.m. ET on the first business day preceding the redemption date.

Based in Toronto, First Capital Realty owns, develops and operates supermarket and drugstore anchored shopping centers.

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