New York, Nov. 11 - Agricore United priced C$100 million of five-year convertible unsecured subordinated debentures to yield 9% and with a 25% initial conversion premium.
The offering was sold as a bought deal via lead managers Scotia Capital Inc. and National Bank Financial Inc.
The convertibles were not offered in the U.S.
The Winnepeg, Manitoba agricultural company will use proceeds for general corporate purposes including funding possible future acquisitions.
Agricore United's principal shareholder, ADM Agri-Industries, Ltd., a subsidiary of Archer Daniels Midland Co., bought $45 million of the convertibles.
| Issuer: | Agricore United
|
| Issue: | Convertible unsecured subordinated debentures
|
| Lead managers: | Scotia Capital Inc., National Bank Financial Inc.
|
| Amount: | C$100 million
|
| Coupon: | 9.0%
|
| Maturity: | Nov. 30, 2007
|
| Greenshoe: | $5 million
|
| Conversion premium: | 25% over closing price of C$6.02 on Nov. 11
|
| Conversion price: | C$7.50
|
| Conversion ratio: | 133.33
|
| Call: | Dec. 1, 2005 onwards
|
| Settlement: | Nov. 27
|
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