Atrium Mortgage Investment Corp. on Oct. 8 announced a public offering of its common shares.
The company entered into an agreement with a syndicate of underwriters book-run by TD Securities Inc. and RBC Capital Markets and co-led by CIBC Capital Markets. Under the agreement, the underwriters will purchase 1,120,000 Atrium Mortgage Investment common shares at C$13.40 per share, for gross proceeds of about C$15.0 million.
The underwriters have an option to buy up to 168,000 additional shares at the issue price, exercisable in whole or in part at any time for a period of up to 30 days following closing of the public offering, to cover overallotments. If the overallotment option is exercised in full, the gross proceeds of the public offering will be about C$17.3 million.
Additionally, Atrium Mortgage Investment agreed to sell 746,300 shares on a nonbrokered private placement basis to an entity controlled by an existing shareholder. The shares will be sold at the issue price, for gross proceeds of approximately C$10 million.
The nonbrokered private placement is expected to close concurrently with the closing of the public offering. Shares sold under this transaction will be subject to a four-month hold period.
Closing of the public offering is not contingent on the closing of the private placement. The public offering is expected to close on or about Oct. 18, and is subject to certain conditions, including the approval of the Toronto Stock Exchange.
Net proceeds from the public offering and the nonbrokered private placement will be used to repay existing debt under the company's revolving operating credit facility, which will then be available to be drawn, as required, for general corporate purposes, particularly funding future mortgage loan opportunities.
