Four-year subordinated unsecured convertible notes fund debt repayment
By Devika Patel
Knoxville, Tenn., May 4 - Centric Health Corp. said it arranged a C$15 million private placement of subordinated unsecured convertible notes on April 25.
The 5.5% note is due in four years and may be redeemed with 30 days' notice. It is convertible into common shares at C$0.93 per share, which is a 9.41% premium to the April 24 closing share price of C$0.85 and 110% of the volume weighted-average trading price of the stock for the five trading days preceding April 25, the company noted in a press release. The note may be prepaid.
Investors also will receive 4.05 million warrants. The warrants are each exercisable at C$0.93 for four years at an exercise price equal to a 20% premium over the conversion price.
Proceeds will be used to repay senior debt.
Based in Toronto, Centric Health is a health care investment company.
| Issuer: | Centric Health Corp.
|
| Issue: | Subordinated unsecured convertible notes
|
| Amount: | C$15 million
|
| Maturity: | Four years
|
| Coupon: | 5.5%
|
| Conversion price: | C$0.93
|
| Call: | Yes
|
| Warrants: | 4.05 million
|
| Warrant expiration: | Four years
|
| Warrant strike price: | C$0.93
|
| Investor: | Isaac Capital Group LLC
|
| Pricing date: | April 25
|
| Announcement date: | May 4
|
| Stock symbol: | Toronto: CHH
|
| Stock price: | C$0.85 at close April 24
|
| Market capitalization: | C$93.66 million
|
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