Toronto-based Atrium Mortgage Investment Corp. is offering C$25 million of 5.60% convertible unsecured subordinated debentures due March 21, 2025.
The debentures may be converted into the company's common shares at a conversion price of C$14.75 per share.
Atrium also granted the underwriters a 30-day option to purchase up to an additional C$3.75 million of the debentures. If the overallotment option is fully exercised, gross proceeds are expected to be about C$28.8 million.
Net proceeds from the offering will be used to repay all of the company's outstanding 6.25% convertible unsecured subordinated debentures due March 31, and/or repay existing debt under its revolving operating credit facility.
The offering is expected to close on or about March 29.
TD Securities Inc. and RBC Capital Markets are the offering's book runners, and it is being co-led by CIBC Capital Markets.