Chicago, Aug. 2 – Firm Capital American Realty Partners Corp. priced C$17 million of convertible debentures due 2026 with a coupon of 6.25%, according to a company news release.
Canaccord Genuity Corp. was lead underwriter for a syndicate which included Echelon Wealth Partners Inc., Industrial Alliance Securities Inc., Raymond James Ltd., TD Securities Inc., GMP Securities LP, CIBC World Markets Inc., and Laurentian Bank Securities Inc. for the bought deal.
Each convertible debenture unit will include 79 common share purchase warrants of the company. Each warrant will be exercisable to acquire one common share for an exercise price of $12.60 for a period of two years after closing.
The deal carries a greenshoe for an additional 2,550 convertible debenture units at the offering price, or up to 2,550 convertible debentures at a price of C$942.33 per additional debenture, or up to 201,450 additional warrants at a price of C$0.73 per warrant, or any combination thereof, so long as the over-allotment option does not exceed 2,550 additional debentures and 201,450 additional warrants.
Gross proceeds are expected to be C$19.55 million if the greenshoe is exercised in full.
The convertible debentures will be distributed via a prospectus supplement in Canada.
Proceeds will be used to fund prospective acquisitions of income producing multifamily residential properties in the United States by way of joint venture partnerships, to fund prospective investments in mortgage debt on real estate properties in the United States, for the repayment of debt, for working capital and for general corporate purposes.
Firm Capital is a U.S.-focused real estate investment entity that pursues real estate and debt investments.
| Issuer: | Firm Capital American Realty Partners Corp.
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| Securities: | Convertible debenture units
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| Amount: | C$17 million
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| Greenshoe: | C$2.55 million
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| Maturity: | June 30, 2026
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| Bookrunners: | Canaccord Genuity Corp., Echelon Wealth Partners Inc., Industrial Alliance Securities Inc., Raymond James Ltd., TD Securities Inc., GMP Securities LP, CIBC World Markets Inc., and Laurentian Bank Securities Inc.
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| Coupon: | 6.25%
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| Price: | Par
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| Conversion price: | C$12.60
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| Pricing date: | Aug. 2
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| Settlement date: | Aug. 8
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| Stock symbol: | TSX: FCA
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| Stock price: | C$10
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| Market capitalization: | C69.35 million
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