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Atrium Mortgage Investment Corporation Announces $30 Million Public Offering of Convertible Unsecured Subordinated Debentures
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About this update from Atrium Mortgage Investment Corp.
[{"type":"text","content":"Atrium Mortgage Investment Corporation Announces $30 Million Public Offering of Convertible Unsecured Subordinated Debentures\n\n\n\n THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.\n \n\n TORONTO, June 12, 2025 (GLOBE NEWSWIRE) -- Atrium Mortgage Investment Corporation (TSX:AI, AI.DB.D, AI.DB.F and AI.DB.G) (“Atrium”) announced today that it has entered into an agreement with a syndicate of underwriters bookrun by TD Securities Inc. and RBC Capital Markets, pursuant to which the underwriters will purchase $30 million aggregate principal amount of 6.00% convertible unsecured subordinated debentures of Atrium due September 30, 2032 at a price of $1,000 per debenture. Atrium has also granted to the underwriters an over-allotment option to purchase up to an additional $4,500,000 aggregate principal amount of debentures at the same price, exercisable in whole or in part at any time for a period of up to 30 days following closing of the offering, to cover over-allotments. If the over-allotment option is exercised in full, the gross proceeds of the offering will total $34,500,000.\n \n\n Atrium will use the net proceeds of the offering 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.\n \n\n The offering of debentures is expected to close on or about June 30, 2025 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.\n \n\n The debentures will mature on September 30, 2032 and will accrue interest at the rate of 6.00% per annum payable semi-annually in arrears on March 31 and September 30 in each year, commencing March 31, 2026. 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 will be $13.65 for each common share, subject to adjustment in certain circumstances.\n \n\n The debentures will be direct, unsecured obl...