Atrium Mortgage Investment Corporation Announces $30 Million Public Offering of Convertible Unsecured Subordinated Debentures

Core Viewpoint - Atrium Mortgage Investment Corporation has announced an agreement to issue $30 million in 6.00% convertible unsecured subordinated debentures, with an option for an additional $4.5 million, to repay existing debt and fund future mortgage opportunities [1][2]. Group 1: Offering Details - The offering consists of 6.00% convertible unsecured subordinated debentures due September 30, 2032, priced at $1,000 each [1]. - The total gross proceeds could reach $34.5 million if the over-allotment option is fully exercised [1]. - The expected closing date for the offering is around June 30, 2025, pending necessary approvals [2]. Group 2: Debenture Terms - The debentures will accrue interest at 6.00% per annum, payable semi-annually starting March 31, 2026 [3]. - Holders can convert the debentures into common shares at a conversion price of $13.65, subject to adjustments [3]. - The debentures are direct, unsecured obligations of Atrium and are subordinated to other senior debts [4]. Group 3: Redemption and Repayment - The debentures are not redeemable before September 30, 2028, with specific conditions for redemption thereafter [5]. - Atrium has the right to repay the principal amount through the issuance of common shares, and can also pay interest in common shares [6]. Group 4: Company Overview - Atrium is a non-bank provider of residential and commercial mortgages, focusing on major urban centers in Canada [9]. - The company aims to provide stable dividends and preserve shareholder equity by adhering to conservative risk parameters [9]. - Atrium operates as a Mortgage Investment Corporation (MIC) under Canadian tax law, allowing it to avoid taxation on income if distributed as dividends [10].