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BSR Real Estate Investment Trust Announces Bought Deal Public Offering of US$40 Million of Convertible Unsecured Subordinated Debentures
BSR Real Estate Investment Trust Announces Bought Deal Public Offering of US$40 Million of...
About this update from Bsr Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nBSR Real Estate Investment Trust Announces Bought Deal Public Offering of US$40 Million of Convertible Unsecured Subordinated Debentures\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nLITTLE ROCK, Ark. and TORONTO, Aug. 27, 2020\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n LITTLE ROCK, Ark. and TORONTO, Aug. 27, 2020 /CNW/ - BSR Real Estate Investment Trust (\"BSR\", or the \"REIT\") (TSX: HOM.U) (TSX: HOM.UN) announced today that it has entered into an agreement to sell to a syndicate of underwriters led by BMO Capital Markets, on a bought deal basis, US$40 million aggregate principal amount of 5.00% convertible unsecured subordinated debentures due September 30, 2025 (the \"Debentures\") (the \"Public Offering\").\nIn addition, the REIT has also granted the underwriters an option (the \"Over-Allotment Option\"), exercisable at any time, in whole or in part, for a period of 30 days following the closing of the Public Offering to purchase up to an additional US$6 million aggregate principal amount of Debentures, which, if exercised in full, would increase the gross proceeds of the Public Offering to approximately US$46 million.\nThe Debentures are convertible at the option of the holder into units of the REIT at US$14.40 per unit (the \"Conversion Price\"). The Conversion Price represents a conversion rate of approximately 69.4444 units for each US$1,000 principal amount of Debentures, subject to adjustment in accordance with a trust indenture to be entered into on or before closing of the Public Offering that will govern the Debentures. The Debentures will bear interest at a rate of 5.00% per annum and will be payable semi-annually on March 31 and September 30 until maturity on September 30, 2025, with interest payments commencing on March 31, 2021. The Debentures will not be redeemable by BSR prior to September 30, 2023. On or after September 30, 2023, but prior to September 30, 2024, the Debentures will be redeemable, in whol...