By Rebecca Melvin
New York, Oct. 5 - Ag Growth International Inc. priced C$100 million of five-year convertibles at par on a bought-deal basis to yield 7% with an initial conversion premium of 37.5%, according to a news release.
There is an over-allotment option to purchase up to an additional C$15 million of the Regulation S debentures.
The issue was made via a syndicate of underwriters led by TD Securities Inc. The syndicate also included CIBC, National Bank Financial Inc., Cormark Securities Inc., Wellington West Capital Markets Inc. and Genuity Capital Markets.
Proceeds will be used to repay debt and for general corporate purposes.
The debentures, which mature Dec. 31, 2014, will be convertible at a price of C$44.98 per share. The debentures are non-callable until Dec. 31, 2012.
After that, and prior to Dec. 31, 2013, the debentures may be redeemed at a volume weighted average trading price of 125% of the conversion price on 20 consecutive trading days.
The offering is subject to normal regulatory approvals, including approval of the TSX.
Based in Winnipeg, Man., Ag Growth is a maker of portable and stationary grain handling, storage and conditioning equipment, including augers and belt conveyors.
| Issuer: | Ag Growth International Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Lead manager: | TD Securities Inc.
|
| Amount: | C$100 million
|
| Greenshoe: | C$15 million
|
| Maturity: | Dec. 31, 2014
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion premium: | 37.5%
|
| Conversion price: | C$44.98
|
| Conversion ratio: | 22.2321
|
| Contingent conversion: | From Dec. 31, 2012 to Dec. 31, 2013 at 125% of the conversion price
|
| Pricing date: | Oct. 5
|
| Settlement date: | Oct. 27
|
| Distribution: | Regulation S, public offering
|
| Stock symbol: | TSX: AFN
|
| Stock reference price: | C$32.71
|
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