By Rebecca Melvin
New York, Feb. 6 - Atrium Mortgage Investment Corp. priced C$30 million five-year convertible debentures in a bought deal at par to yield 6.25% with an initial conversion premium of 25%, according to a news release.
The Regulation S deal has a C$4.5 million greenshoe and was bought by a syndicate of underwriters led by bookrunners TD Securities Inc. and RBC Capital markets and co-led by CIBC.
The debentures are non-callable until March 31, 2017 and then are provisionally callable until March 31, 2018, if shares rise to 125% of the conversion price. The debentures mature March 31, 2019.
The securities are being priced under a preliminary short-form prospectus in Canadian provinces except Quebec.
Proceeds will be used for general corporate purposes and to repay existing debt under its revolving operating credit facility, which will then be available to be drawn, as required, for general corporate purposes, particularly funding future mortgage loan opportunities.
The debentures will rank pari-passu to Atrium's existing 5.25% convertible unsecured subordinated debentures due June 30, 2020.
Toronto-based Atrium is a non-bank lender.
| Issuer: | Atrium Mortgage Investment Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$30 million
|
| Greenshoe: | C$4.5 million
|
| Maturity: | March 31, 2019
|
| Underwriters: | Led by TD Securities Inc. and RBC Capital Markets, and co-led by CIBC
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 25%
|
| Conversion price: | C$13.30
|
| Calls: | Non-callable until March 31, 2017, then provisionally callable until March 31, 2018 if shares exceed 125% of conversion price
|
| Pricing date: | Feb. 6
|
| Settlement date: | Feb. 27
|
| Stock symbol: | Toronto: AI
|
| Stock reference price: | C$10.63 as of close Feb. 6
|
| Distribution: | Regulation S, public offering in Canadian provinces except Quebec
|
| Market capitalization: | C$225.5 million
|
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