Retrocom Mid-Market Real Estate Investment Trust will list $28.75-million principal amount of its 5.5-per-cent extendable convertible unsecured subordinated debentures due June 30, 2020, on the Toronto Stock Exchange at the open on Monday, May 27, 2013, according to the TSX. As in a May 13, 2013, short form prospectus, Retrocom plans to sell $25-million worth of debentures. It has granted the underwriters an overallotment option to buy up to another $3.75-million worth of the debentures for 30 days from the closing of the offering. The debentures will pay interest semi-annually, in arrears, on June 30 and Dec. 31 in each year, beginning on Dec. 31, 2013. The conversion price of the debentures is $7.20 per unit, which represents 138.8889 units per $1,000 principal amount.

The debentures are not redeemable by the company before June 30, 2016. On and after June 30, 2016, but before June 30, 2018, the trust can redeem any or all of the debentures for the principal amount plus any accrued and unpaid interest, provided the volume-weighted average trading price of the units on the TSX for the 20 consecutive trading days ending five days before the date on which the notice of redemption is given is not less than 125 per cent of the conversion price. On and after June 30, 2018, but before the final maturity date, the trust can redeem any or all or the debentures for the principal amount plus any accrued and unpaid interest.

The trust plans to use the money raised to partially finance the acquisition of a portfolio of 12 properties from First Capital Realty Inc. for $193-million. The TSX reports the debentures will trade under the symbol RMM.DB.C and Cusip No. 761298 AE 8.