By Kenneth Lim
Boston, April 16 - Canada's Cominar Real Estate Investment Trust on Monday priced C$70 million of 7.5-year convertible subordinated unsecured debentures to yield 5.7% with an initial conversion premium of 15%.
The convertibles were offered at par.
There is an over-allotment option for an additional C$10.5 million.
National Bank Financial Inc. was the lead underwriter for the Regulation S offering.
The debentures are non-callable for the first three years with a call hurdle at 125% of the conversion price in years four and five. The debentures are freely callable after that.
There are no puts.
There is a concurrent offering of 7.113 million subscription receipts for the company's common stock at C$23.90 apiece.
Cominar, a Vanier, Quebec-based real estate investment trust with a portfolio of office, retail and industrial properties in the Quebec City and Montreal areas, said the proceeds of the deal will be used to reduce outstanding debt and for general purposes.
| Issuer: | Cominar Real Estate Investment Trust
|
| Issue: | Convertible subordinated unsecured debentures
|
| Bookrunner: | National Bank Financial
|
| Amount: | C$70 million
|
| Greenshoe: | C$10.5 million
|
| Maturity: | Dec. 31, 2014
|
| Coupon: | 5.7%
|
| Price: | Par
|
| Yield: | 5.7%
|
| Conversion premium: | 15%
|
| Conversion price: | C$27.50
|
| Conversion ratio: | 36.36
|
| Call protection: | Non-callable before June 30, 2010; callable subject to 125% hurdle before June 30, 2012; thereafter freely callable
|
| Puts: | None
|
| Pricing date: | April 16
|
| Distribution: | Regulation S
|
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