Canaccord Genuity will redeem all 6.25% convertibles due 2023

Chicago, March 18 – Canaccord Genuity Group Inc. issued a notice that it will redeem all C$132,690,000 of its 6.25% convertible senior subordinated debentures due Dec. 31, 2023, according to a press release.

The debentures will be redeemed on April 9 at C$1,250 per C$1,000 notes plus C$16.95 in interest for a total redemption consideration of C$1,266.95 per C$1,000 note.

As previously announced, the company entered into a supplemental indenture regarding the notes wherein the company has the right to redeem any or all of the outstanding debentures, for consideration of cash equal to the greater of 125% of the principal amount, being C$1,250, and the sum of the amount calculated by multiplying 100 by the volume weighted average price of the common shares of the company for the 20 trading day period ending two trading days prior to the date upon which the company announces its intention to exercise the amended redemption right and C$40.00 plus interest.

The volume weighted average price of the common shares for the 20-trading day period from Feb. 17 to March 16 was C$12.0551.

The company also suspended the holders’ right to convert their debentures into common shares, at the current exercise price of C$10, until Nov. 1, 2021.

Funding for the redemption is based on a commitment letter with HPS Investment Partners, LLC for a senior secured first-lien term loan facility in the amount of C$120 million to be funded in sterling in a single borrowing before the redemption date.

The facility will be repaid out of the proceeds of the previously announced acquisition of certain funds or accounts managed by HPS of preferred shares issued by Canaccord Genuity Wealth Group Holdings (Jersey) Ltd.

The independent financial services company is based in Toronto.

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