Difference Capital offering to buy back C$12 million 8% convertibles

By Wendy Van Sickle

Columbus, Ohio, Aug. 19 – Difference Capital Financial Inc. will repurchase up to C$12 million of its outstanding 8% convertible unsecured subordinated debentures due July 31, 2018 via a substantial issuer bid announced in a Wednesday press release.

The company is offering C$850 per C$1,000 principal amount plus accrued interest for the debentures. A total of C$47,598,000 of the debentures are outstanding.

The offer expires at 4 p.m. ET on Sept. 29. It is not conditional upon any minimum number of debentures being deposited but is subject to some other conditions.

The company will suspend purchases of the debentures under its normal course issuer bid announced on Dec. 8, 2014 until 20 business days after the offer expires.

To date, Difference Capital said it has repurchased C$8,481,000 of the debentures through its normal course issuer bid.

The company said that per Canadian securities laws it hired Evans & Evans, Inc. to prepare a formal valuation of the debentures and that its report placed the fair market value of the convertibles at $768 to $800 per $1,000 principal.

Debentureholders are advised to contact the company (416 649-5085 or info@differencecapital.com) with questions about the offer.

Difference Capital is a specialty finance company based in Toronto.

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