True North greenshoe lifts extendible convertibles to C$23 million

By Toni Weeks

San Luis Obispo, Calif., June 19 – Underwriters for True North Apartment Real Estate Investment Trust’s offering of extendible-maturity convertible debentures exercised their over-allotment option in full, lifting the deal’s proceeds to C$23 million.

The company priced C$20 million of the debentures, along with the greenshoe, at par on May 29. The initial conversion premium is 15.5%.

The deal was arranged on a bought-deal basis by a syndicate co-led by CIBC World Markets Corp. and Raymond James Ltd.

Proceeds from the over-allotment option will be used to repay indebtedness, for future acquisitions and for general trust purposes. Proceeds from the original deal will be used to finance a portion of the acquisition of a portfolio of 29 properties located in Ontario and Alberta with an aggregate price of about C$286 million.

The debentures will have an initial maturity date of Aug. 29. If the acquisition occurs before this termination event date, the maturity date will extend automatically to June 30, 2019.

True North is a Toronto-based REIT focused on multi-suite residential rental properties in Canada and the United States.

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