By Rebecca Melvin
New York, Nov. 27 - Ag Growth International Inc. has priced C$75 million of five-year convertible unsecured subordinated debentures at par on a bought-deal basis to yield 5.25% with an initial conversion premium of 36%, according to a news release.
There is an over-allotment option to purchase up to an additional C$11.25 million of the Regulation S debentures.
The issue was made via a syndicate of underwriters led by TD Securities Inc. National Bank Financial Inc. and CIBC.
Proceeds will be used to partially fund the redemption of all the company's outstanding 7% convertibles due 2014. The company will formally notify noteholders and the trustee of the redemption upon closing of the new debentures.
The company also plans to use a portion of the proceeds to repay debt under its credit facility, which will be available to fund the redemption upon expiry of the 30-day notice period.
The new debentures, which mature Dec. 31, 2018, will be convertible at a price of C$55.00 per share. The debentures are non-callable until Dec. 31, 2016 and then are provisionally callable if shares rise to 125% of the conversion price.
The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange.
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
|
| Amount: | C$75 million
|
| Greenshoe: | C$11.25 million
|
| Maturity: | Dec. 31, 2018
|
| Lead managers: | TD Securities Inc., National Bank Financial Inc., CIBC
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 36%
|
| Conversion price: | C$55.00
|
| Conversion ratio: | 18.1818
|
| Calls: | Non-callable until Dec. 31, 2018, then provisionally callable at 125% price hurdle
|
| Pricing date: | Nov. 27
|
| Settlement date: | Dec. 17
|
| Distribution: | Regulation S, public offering
|
| Stock symbol: | Toronto: AFN
|
| Stock reference price: | C$40.55
|
| Market capitalization: | C$511.15 million
|
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