By Kenneth Lim
Boston, Aug. 18 - Creststreet Power and Income Fund LP priced C$30 million of five-year convertible subordinated unsecured debentures on Aug. 11 at a coupon of 8% and an initial conversion premium of 17.7% over its closing stock price that day.
The debentures were offered at par and have an initial conversion price of C$6.65 per unit.
CIBC World Markets, BMO Capital Markets were the lead underwriters for the deal, which is registered in Canada.
The debentures are non-callable for the first three years, after which they may be called subject to a hurdle at 125% of the conversion price. Investors may put the convertibles only upon a change of control at Creststreet.
Creststreet is a Toronto-based operator of wind-energy projects selling power to electrical utilities. It plans to use the proceeds of the deal to repay debt related to its investment in Kettles Hill Wind Energy Inc. and for general business purposes. The company also intends to pursue a further investment in Kettles Hill.
| Issuer: | Creststreet Power and Income Fund LP
|
| Issue: | Convertible subordinated unsecured debentures
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| Underwriters: | CIBC World Markets, BMO Capital Markets
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| Amount: | C$30 million
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| Maturity: | Sept. 15, 2011
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Conversion premium: | 17.7%
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| Conversion price: | C$6.65
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| Conversion ratio: | 150.376
|
| Takeover protection: | Change-of-control put
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| Call protection: | Non-callable until Sept. 15, 2009, subject to 125% threshold after that
|
| Puts: | None
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| Pricing date: | Aug. 11
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| Distribution: | Registered in Canada
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