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 G (the “Series G 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 3,200,000 Series G Units (inclusive of 200,000 Series G Units issued pursuant to the partial exercise of the Underwriters’ option) at a price of $25.00 per Series G Unit for gross proceeds to Artis of $80,000,000.
DBRS Limited assigned a rating of Pfd-3 (low) to the Series G Units.
Artis intends to use the net proceeds from the Financing to repay indebtedness, fund future acquisitions, and for general trust purposes.
AX.PR.G is a FixedReset, 5.00%+313, announced July 18. Note that it is not strictly a “preferred share”, it is a trust unit, and that it pays interest and return of capital (see comments), not dividends. The issue will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.
The DBRS rating of Pfd-3(low) is now official. As was the case with Friday’s closing of PPL.PR.A, I don’t believe the price decline has anything to do with the specifics of the issue, or should be taken as an indication that the underwriters got it wrong … it’s just a crummy environment right now for low-quality FixedResets.
AX.PR.G traded 219,520 shares today in a range of 24.24-70 before closing at 24.66-69, 18×50. Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2043-07-29
Maturity Price : 22.99
Evaluated at bid price : 24.66
Bid-YTW : 4.91 %