AX.PR.E Firm on Good Volume

Artis Real Estate Investment Trust has announced:

that it has closed its previously announced public offering (the “Financing”) of Cumulative Rate Reset Preferred Trust Units, Series E, (the “Series E Units”) on a bought deal basis through a syndicate of underwriters led by RBC Capital Markets and CIBC (the “Underwriters”). Artis issued and sold an aggregate of 4.0 million Series E Units at a price of $25.00 per Series E Unit for gross proceeds to Artis of $100,000,000.

DBRS Limited assigned a rating of Pfd-3 (low) to the Series E Units.

Artis intends to use the net proceeds from the Financing to repay indebtedness, fund future acquisitions, and for general trust purposes.

AX.PR.E is a FixedReset, 4.75%+330, announced March 12. It must be remembered that these are not actually preferred shares, as the term is usually used; they are preferred units and the distributions will be characterized in the same manner as distributions to the Capital units. In 2012, all distributions to AX.UN, AX.PR.A and AX.PR.U were all Return of Capital.

AX.PR.E will be tracked by HIMIPref™ and analyzed as if its distributions were considered interest income. It has been assigned to the Scraps index on credit concerns.

AX.PR.E traded 268,820 shares today in a range of 24.88-04 before closing at 25.01-04, 8×57. Vital statistics are:

Maturity Type : Limit Maturity
Maturity Date : 2043-03-21
Maturity Price : 23.13
Evaluated at bid price : 25.01
Bid-YTW : 4.52 %

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