By Rebecca Melvin
New York, Sept. 2 – Atrium Mortgage Investment Corp. priced C$30 million seven-year convertible debentures in a bought deal on Tuesday at par to yield 5.5% with an initial conversion premium of 26%, 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 Sept. 30, 2017 and then are provisionally callable until Sept. 30, 2019, if shares rise to 125% of the conversion price. The debentures mature Sept. 30, 2021.
The securities are being priced under a preliminary short-form prospectus in Canadian provinces except Quebec.
Proceeds will be used to repay existing debt under the company’s revolving credit facility and for general corporate purposes, particularly funding future mortgage loan opportunities.
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: | Sept. 30, 2021
|
| Underwriters: | Led by TD Securities Inc. and RBC Capital Markets, and co-led by CIBC
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 26%
|
| Conversion price: | C$14.65
|
| Calls: | Non-callable until Sept. 30, 2017, then provisionally callable until Sept. 30, 2019 if shares exceed 125% of conversion price
|
| Pricing date: | Sept. 2
|
| Settlement date: | Sept. 23
|
| Stock symbol: | Toronto: AI
|
| Stock reference price: | C$11.60 as of close Sept. 2
|
| Distribution: | Regulation S, public offering in Canadian provinces except Quebec
|
| Market capitalization: | C$282.5 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
