Firm Capital Property Trust closes private placement offerings for $20 million, completes plan of arrangement involving ISG Capital Corporation and completes property acquisiton

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Nov. 29, 2012 /CNW/ - Firm Capital Property Trust (the\n \"Trust\")( TSXV: FCD.UN) is pleased to announce that is has completed\n the following previously announced transactions:\n\n\nDirect private placement for net proceeds of $10.0 million at $5.00 per\n unit (increased from $9.0 million ), no commissions were payable on\n this offering and the units issued are subject to a four-month hold\n period expiring on March 30, 2013;\n\n\nBrokered private placement for gross proceeds of $10.0 million at $5.00\n per unit (subject to an underwriting commission of 5.5%) by a syndicate\n of underwriters led by National Bank Financial Inc. and including TD\n Securities Inc., Dundee Securities Ltd. , Raymond James Ltd. and\n Desjardins Securities Inc.;\n\n\nPlan of arrangement involving ISG Capital Corporation (\"ISG\"), the Trust\n and the holders of common shares (\"Common Shares\") of ISG (\"ISG\n Shareholders\");\n\n\n$15 million debt facility, including a $7.0 million revolver with a\n Canadian chartered bank; and\n\n\nThe acquisition of four properties from Calloway REIT for a purchase\n price of $27 million.\n\n\nThe Trust will have additional acquisition capacity of approximately $25\n million at 60% debt to gross book value without the requirement to\n raise additional equity.\n\n\nThe Trust will trade on the TSX Venture Exchange (\"TSXV\") under the\n symbol FCD.UN and the ISG Common Shares have ceased trading today.  The\n Trust expects to make its first distribution of $0.02917 per unit on or\n about January 15, 2013 for the period commencing today to December 31,\n 2012 to unitholders of record on December 31, 2012. In connection with\n the Arrangement, the Trust has granted 415,000 options at $5.00 per\n Trust Unit to management and the trustees.\n\n\nPursuant to a plan of arrangement involving ISG, the Trust and the ISG\n Shareholders under Section 192 of the Canada Business Corporations Act (the \"Arrangement\"), the ISG Shareholders elected (or were deemed to\n have elected) to (i) redeem a total of 7,117,965 Common Shares for an\n aggregate amount of approximately $1.2 million in cash and (ii)\n exchange a total of 11,124,035 Common Shares for a minimum of 373,768\n units of the Trust (\"Trust Units\"), with additional units of the Trust\n to be issued based on the minimum exchange ratio, at the ...

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