By Abigail W. Adams
Portland, Me., Dec. 20 – Northwest Healthcare Properties Real Estate Investment Trust priced C$125 million of five-year convertible subordinated debentures on Dec. 11 at par with a coupon of 5.5% and an initial conversion premium of 30%, according to a company news release.
RBC Capital Markets LLC and BMO Capital Markets led a syndicate of underwriters for the bought deal, which carried a greenshoe of C$18.75 million. The notes are non-callable until Dec. 31, 2021.
They are callable from Jan. 1, 2022 to Dec. 31, 2022 subject to a 125% hurdle then freely callable.
Proceeds will be used to repay $105.6 million of corporate debt, including the 7.25% convertible debentures due Oct. 31, 2019.
Proceeds will also be used to partly fund the acquisition of two German medical office properties for a combined purchase price of C$30.6 million.
Northwest Healthcare Properties REIT is a Toronto-based open-ended real estate investment trust.
| Issuer: | Northwest Healthcare Properties Real Estate Investment Trust
|
| Securities: | Convertible unsecured subordinated debentures
|
| Amount: | C$125 million
|
| Greenshoe: | C$18.75 million
|
| Maturity: | Dec. 31, 2023
|
| Bookrunners: | RBC Capital Markets LLC and BMO Capital Markets
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 30%
|
| Conversion price: | C$13.35
|
| Call options: | Non-callable until Dec. 31, 2021, then subject to a 125% hurdle until Dec. 31, 2022, when they become freely callable
|
| Pricing date: | Dec. 11
|
| Settlement date: | Dec. 20
|
| Stock symbol: | TSX: NWH.UN
|
| Stock price: | C$10.28 as of market close Dec. 11
|
| Market capitalization: | C$1 billion
|
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