Business
InterRent REIT Announces Filing of Preliminary Prospectus for a $25 Million Offering of Convertible Debentures and Proposed Private Placement of Units
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTI...
About this update from Interrent Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\n/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT\n\n\nINTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR\n\n\nDISSEMINATION IN THE UNITED STATES./\n\n\nTORONTO, Dec. 21 /CNW/ - InterRent Real Estate Investment Trust\n(TSX:IIP.UN) ("InterRent") is pleased to announce that it has filed a\npreliminary prospectus with securities commissions and other similar\nregulatory authorities in each of the provinces of Canada in connection with\nthe previously announced offering (the "Offering"), on a bought deal basis, of\n$25 million of convertible unsecured subordinated debentures (the\n"Debentures"). The Debentures have a coupon rate of 7.0% per annum and will be\nconvertible at the holder's option into units of InterRent (the "Units") prior\nto maturity at a conversion price of $4.60 per Unit all upon the terms set out\nin the preliminary prospectus. InterRent intends to use the net proceeds of\nthe Offering to reduce indebtedness. Closing of the Offering is expected to\noccur on January 11, 2008 and is subject to the approval of the Toronto Stock\nExchange (the "TSX").\n\n\nThe Debentures are being offered through a syndicate of underwriters led\nby Scotia Capital Inc., and including National Bank Financial Inc., Blackmont\nCapital Inc., Dundee Securities Corporation and Desjardins Securities Inc.\n\n\nInterRent also intends to issue, pursuant to a non-brokered private\nplacement (the "Private Placement"), approximately 965,909 Units at a price of\n$4.40 per Unit for total gross proceeds of $4,250,000, to an existing\ninstitutional investor. Although the Private Placement is expected to close\nconcurrently with the closing of the Offering, the closing of the Private\nPlacement is not dependent on the closing of the Offering. The proceeds from\nthe Private Placement will be used to fund future acquisitions. The Units\nissued under the Private Placement will be subject to a four month hold period\nunder Canadian securities legislation. The completion of the Private Placement\nis subject to the review and approval of the TSX.\n\n\nAbout InterRent\n\n\nInterRent is a rapidly expanding, growth oriented real estate investment\ntrust engaged in building unitholder value through the accretive acquisition,\nownership and operation of strateg...