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BSR Real Estate Investment Trust Announces Successful Closing of Bought Deal Public Offering of US$40 Million of Convertible Unsecured Subordinated Debentures
BSR Real Estate Investment Trust Announces Successful Closing of Bought Deal Public Offeri...
About this update from Bsr Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nBSR Real Estate Investment Trust Announces Successful Closing of 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, Sept. 3, 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, Sept. 3, 2020 /CNW/ - BSR Real Estate Investment Trust (\"BSR\" or the \"REIT\") (TSX: HOM.U) (TSX: HOM.UN) announced today that it has completed its previously announced public offering (the \"Public Offering\") whereby the REIT sold US$40 million aggregate principal amount of 5.00% convertible unsecured subordinated debentures due September 30, 2025 (\"Debentures\") to a syndicate of underwriters led by BMO Capital Markets (the \"Underwriters\") on a bought deal basis.\nThe REIT has granted the Underwriters the option to purchase up to US$6 million aggregate principal amount of additional Debentures at a price of US$1,000 per Debenture to cover over-allotments, if any, and for market stabilization purposes, exercisable in whole or in part anytime up to 30 days following the date hereof (the \"Over-Allotment Option\").\nBSR intends to use the net proceeds from the Public Offering to repay a portion of amounts outstanding on its credit facility (current outstanding balance of US$193 million) and for general trust purposes. With today's closing of the Public Offering (and assuming the Over-Allotment Option is exercised in full), BSR expects to have access to approximately US$98 million of available liquidity through unrestricted cash and borrowing capacity available under its credit facility. BSR also expects to have acquisition capacity of approximately US$200 million to US$220 million to pursue its acquisition pipeline.\nThe Debentures were offered in each of the provinces and territories of Canada pursuant to the REIT's base shelf prospectus dated November 8, 2019. The terms of the Public Offering are described in a...