TORONTO, June 18, 2013 (GLOBE NEWSWIRE) -- Atrium Mortgage Investment Corporation (TSX:AI) ("Atrium") is pleased to report that it has closed its previously announced public offering of $30 million aggregate principal amount of 5.25% convertible unsecured subordinated debentures of Atrium due June 30, 2020 with a syndicate of underwriters bookrun by TD Securities Inc., co-led by CIBC and RBC Capital Markets, and including BMO Capital Markets, National Bank Financial Inc., Scotiabank, Dundee Securities Ltd., Canaccord Genuity Corp., Industrial Alliance Securities Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Mackie Research Capital Corporation and M Partners Inc. Atrium has granted the underwriters an over-allotment option to purchase up to an additional $4.5 million aggregate principal amount of debentures, exercisable, in whole or in part, at any time for a period of 30 days following today's closing.
The debentures will trade on the Toronto Stock Exchange under the symbol "AI.DB".
Atrium will use the net proceeds of the offering for general corporate purposes and to repay existing indebtedness under its revolving operating credit facility, which will then be available to be drawn, as required, for general corporate purposes, particularly funding future mortgage loan opportunities.The debentures mature on June 30, 2020 and accrue interest at the rate of 5.25% per annum payable semi-annually in arrears on June 30 and December 31 in each year, commencing December 31, 2013. At the holder's option, the debentures may be converted into common shares of Atrium at any time prior to the close of business on the earlier of the business day immediately preceding the maturity date and the business day immediately preceding the date fixed for redemption of the debentures. The conversion price is $13.50 for each common share, subject to adjustment in certain circumstances. The debentures are direct, unsecured obligations of Atrium, subordinated to other indebtedness of Atrium for borrowed money and rank equally with all other unsecured subordinated indebtedness.