Atrium Mortgage Investment Corporation Completes $30 Million Public Offering of Convertible Unsecured Subordinated Debentures...
28 February 2014 - 12:36AM
Atrium Mortgage Investment Corporation (TSX:AI) (TSX:AI.DB) is
pleased to report that it has closed its previously announced
public offering of $30 million aggregate principal amount of 6.25%
convertible unsecured subordinated debentures of Atrium due March
31, 2019 with a syndicate of underwriters bookrun by TD Securities
Inc. and RBC Capital Markets and co-led by CIBC, and including BMO
Capital Markets, Scotiabank, National Bank Financial Inc.,
Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd.,
Industrial Alliance Securities Inc., Dundee Securities Ltd. and
Mackie Research Capital Corporation. Atrium has granted the
underwriters an over-allotment option to purchase up to an
additional $4.5 million aggregate principal amount of debentures,
exercisable, in whole or in part, at any time for a period of 30
days following today's closing.
The debentures will trade on the Toronto Stock Exchange under
the symbol "AI.DB.A".
Atrium will use the net proceeds of the offering for general
corporate purposes and to repay existing indebtedness 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 mature on March 31, 2019 and accrue interest at
the rate of 6.25% per annum payable semi-annually in arrears on
March 31 and September 30 in each year, commencing September 30,
2014. At the holder's option, the debentures may be converted into
common shares of Atrium at any time prior to the close of business
on the earlier of the business day immediately preceding the
maturity date and the business day immediately preceding the date
fixed for redemption of the debentures. The conversion price is
$13.30 for each common share, subject to adjustment in certain
circumstances.
The debentures are direct, unsecured obligations of Atrium,
subordinated to other senior indebtedness of Atrium, ranking
pari-passu to Atrium's existing 5.25% convertible unsecured
subordinated debentures due June 30, 2020.
The debentures are not redeemable before March 31, 2017. On and
after March 31, 2017 and prior to March 31, 2018, the debentures
may be redeemed, in whole or in part, from time to time at Atrium's
option at par plus accrued and unpaid interest, provided that the
weighted average trading price of the common shares of Atrium on
the Toronto Stock Exchange during the 20 consecutive trading days
ending on the fifth trading day preceding the date on which notice
of the redemption is given is not less than 125% of the conversion
price. On and after March 31, 2018, Atrium may, at its option,
redeem the debentures, in whole or in part, from time to time at
par plus accrued and unpaid interest.
Subject to specified conditions, Atrium has the right to repay
the outstanding principal amount of the debentures, on maturity or
redemption, through the issuance of its common shares. Atrium also
has the option to satisfy its obligation to pay interest through
the issuance and sale of its common shares.
No securities regulatory authority has either approved or
disapproved of the contents of this news release. The securities
being offered have not been, and will not be, registered under the
United States Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United
States unless an exemption from registration is available. This
news release is for information purposes only and does not
constitute an offer to sell or a solicitation of an offer to buy
any securities of Atrium in any jurisdiction.
About Atrium
As a mortgage investment corporation, Atrium is a non-bank
provider of residential and commercial mortgages that lends in
major urban centres in Canada where the stability and liquidity of
real estate are high. Atrium's objectives are to provide its
shareholders with stable and secure dividends and preserve
shareholders' equity by lending within conservative risk
parameters.
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
CONTACT: For further information, please contact
Robert G. Goodall
President and Chief Executive Officer
Jeffrey D. Sherman
Chief Financial Officer
(416) 607-4200
ir@atriummic.com
www.atriummic.com
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