By Marisa Wong
Madison, Wis., June 20 - BTB Real Estate Investment Trust announced that it will issue C$20 million of convertible subordinated debentures to the public on a bought-deal basis.
There is a greenshoe for up to C$3 million of additional debentures, which is exercisable for 30 days after closing.
The syndicate of underwriters for the offering is led by National Bank Financial Inc. and includes Canaccord Genuity Corp., Dundee Securities Ltd., GMP Securities LP and HSBC Securities (Canada) Inc.
The debentures bear interest at 7.25%, payable semiannually beginning Jan. 31, 2012, and will mature on July 31, 2018.
The debentures will be convertible into units of BTB at any time at a conversion price of C$1.22 per unit, or equivalently, a rate of 819.672 units per C$1,000 principal amount.
The debentures are non-callable for three years. On and after July 31, 2014 and before July 31, 2016, the debentures are callable, provided that the volume-weighted average trading price for BTB units is not less than 125% of the conversion price. Beginning July 31, 2016, the debentures may be redeemed by BTB in whole or in part from time to time at par plus accrued interest.
BTB may repay the principal amount of the debentures upon redemption or at maturity by delivering a number of units equal to the amount due divided by 95% of the market price for the units at that time, plus accrued interest in cash.
Proceeds will be used to repay the C$12.9 million of outstanding series A convertible debentures due October 2011, to fund future property acquisitions and for general corporate purposes.
Closing of the offering is expected to take place on July 13.
BTB is a Montreal-based real estate investment trust.
| Issuer: | BTB Real Estate Investment Trust
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$20 million
|
| Maturity: | July 31, 2018
|
| Coupon: | 7.25%
|
| Conversion price: | C$1.22
|
| Conversion ratio: | 819.672
|
| Call option: | If VWAP of BTB units is at least 125% of conversion price beginning July 31, 2014; at any time beginning July 31, 2016
|
| Underwriters: | National Bank Financial Inc. (lead), Canaccord Genuity Corp., Dundee Securities Ltd., GMP Securities LP and HSBC Securities (Canada) Inc.
|
| Announcement date: | June 20
|
| Settlement date: | July 13
|
| Unit symbol: | TSX Venture: BTB
|
| Unit price: | C$0.94 at close June 20
|
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