Atrium Mortgage Investment Corporation has announced a $ 35 million public offering of convertible subordinated bonds, a Canadian business journal.

This news release is not intended to be distributed to or distributed to US news agencies.

Toronto, March 9, 2022 (GLOBE NEWSWIRE) — Atrium Mortgage Investment Corporation (TSX: AI, AI.DB.C, AI.DB.D, AI.DB.E, AI.DB.F) (“Atrium” ) Announced Today, we have signed a contract with Syndicate, an underwriting company operated by TD Securities, Inc. and RBC Capital Markets. Based on this, the underwriter will purchase a total principal of $ 35 million in Atrium’s 5.10% convertible unsecured subordinated debt by March 31, 2029. At a price of $ 1,000 per bond. Atrium has also given underwriters an over-allotment option to buy corporate bonds with a total principal amount of up to $ 5,250,000 at the same price. It can be exercised in whole or in part at any time for up to 30 days after closure. Provided to cover over-allocation. If the over-allotment option is fully exercised, the total offering revenue will total $ 40,250,000.

Atrium will use the net proceeds of the offering to repay existing debt under the revolving line of credit. This debt can be used to fund general corporate purposes, especially future mortgage opportunities, as needed.

Bond offerings are expected to end around March 18, 2022 and are subject to certain conditions, including but not limited to the receipt of all required approvals, including those approved by the Toronto Stock Exchange.

Bonds will mature on March 31, 2029 and will be delinquent on March 31 and September 30 each year from September 30, 2022, accruing interest of 5.10% semi-annually. You can convert to common stock in Atrium at any time before the closing of business, whichever is earlier, the business day immediately before the maturity date or the business day immediately before the redemption date of the bonds. The conversion price will be $ 16.75 per share of common stock, although it may be adjusted in certain circumstances.

Bonds are Atrium’s direct unsecured debt subordinate to Atrium’s other superior debt, and Atrium’s existing 5.30% convertible unsecured subordinated debt due June 30, 2024, due December 31, 2025. It ranks equivalent to 5.50% convertible unsecured subordinated debt. 5.60% convertible subordinated bonds with a maturity of 31 March 2025 and 5.00% convertible subordinated bonds with a maturity of 31 December 2028.

Bonds cannot be redeemed before March 31, 2025. After March 31, 2025 and prior to March 31, 2027, all or part of the bond may be redeemed at any time with the Atrium option, Purplus Accounts Payable. Unpaid interest if the weighted average trading price of Atrium common stock on the Toronto Stock Exchange is 125 or greater on 20 consecutive trading days ending on the 5th trading day prior to the redemption notice. % Of conversion price. Beginning March 31, 2027, Atrium may, at its option, redeem all or part of the bonds with occasional Perplus accrued and accrued interest.

Subject to certain conditions, Atrium reserves the right to repay the principal balance of the bonds at maturity or redemption through the issuance of common stock. The atrium also has the option of paying interest through the issuance and sale of common stock.

The prospectus supplement for the Atrium Short Foam Base Shelf Prospectus dated February 25, 2021 will be submitted to securities regulators in all Canadian states except Quebec by March 11, 2022. No securities regulator has approved or disapproved the content of this news release. The securities offered have not been and will not be registered under the Securities Act of 1933 (Amendment) or the State Securities Act. It may not be offered or sold in the United States unless a registration waiver is available. .. This news release is for informational purposes only and does not constitute an offer to sell or purchase Atrium securities in any jurisdiction.

About the atrium

Canada’s Premier Non-Banklender ™

Atrium is a non-bank provider of mortgage and commercial real estate loans that lends to Canada’s major urban areas of real estate stability and liquidity. The purpose of Atrium is to provide shareholders with stable and safe dividends and maintain their capital by lending within conservative risk parameters.

Since Atrium is a mortgage investment corporation (MIC) as defined by the Income Tax Act (Canada), income is taxed as long as taxable income is paid to shareholders in the form of dividends within 90 days from 31 December each year. It will not be. Such dividends are usually treated as interest income by the shareholders, so each shareholder is in the same position as if the mortgage investment made by the company was made directly by the shareholders. For more information, please refer to the regulatory filings available on or the Atrium website (

Description of future prospects

This news release contains forward-looking statements. Much of this information can be identified by words such as “expect”, “expected”, “do”, “estimated”, or similar expressions that suggest future outcomes or events, and are expected to generate revenue. Includes expected end dates for use and delivery. .. Atrium believes that the expectations reflected in such forward-looking statements are reasonable, but there is no guarantee that these expectations will be proven to be correct and such forward-looking statements. Should not be overly trusted.

Forward-looking statements are based on current information and expectations with many risks and uncertainties, and actual results and events may differ materially from expectations. These risks are identified by the risk associated with the regulation of offerings, the stock exchange, and the ability to meet commercial closure conditions, the uncertainty associated with access to capital markets, and the atrium annually. Risks related to, but not limited to, Atrium’s business, including. Information form for the year ended December 31, 2021 under the heading “Risk Factors” (a copy is available at Forward-looking statements contained in this news release are current as of this document and are subject to change. All forward-looking statements in this news release are qualified by these notes. Except as required by applicable law, Atrium undertakes no obligation to update any forward-looking statement as a result of new information, future events, etc.

Contact us for more information
Robert G. Goodall Jennifer Skovfield
President and Chief Executive Officer CFO
(416) 867-1053

CBJ News Maker

Atrium Mortgage Investment Corporation has announced a $ 35 million public offering of convertible subordinated bonds, a Canadian business journal.

Source link Atrium Mortgage Investment Corporation has announced a $ 35 million public offering of convertible subordinated bonds, a Canadian business journal.

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