By Devika Patel
Knoxville, Tenn., Jan. 28 - Grande Cache Coal Corp. said it has signed a term sheet for a C$17.5 million private placement of a convertible debenture and C$20 million secured revolving credit facility with Brookfield Bridge Lending Fund Inc.
The three-year note carries a coupon of Canadian Prime rate plus 1.75%. It will be convertible at Brookfield's option at C$1.825 per share.
Grande Cache Coal may redeem the debenture at any time in multiples of $250,000 with 30 days notice at a redemption price equal to 107% of the principal amount plus interest.
In addition, at any time after six months from closing, Grande Cache Coal may require Brookfield to convert 50% of the debenture at the conversion price, provided that the 15-day volume weighted average trading price of the company's common shares exceeds C$2.50 per share. Grande Cache Coal may require Brookfield to convert the balance of the convertible debentures in the event the 15-day volume weighted average trading price of the common shares exceeds C$4.00 per share.
Proceeds will be used for general corporate purposes.
Settlement is expected on Feb. 15.
Grande Cache is a Calgary, Alta.-based metallurgical coal-mining company.
| Issuer: | Grande Cache Coal Corp.
|
| Issue: | Convertible debenture, secured revolving credit facility
|
| Amount: | C$37.5 million
|
| Warrants: | No
|
| Investor: | Brookfield Bridge Lending Fund Inc.
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| Pricing date: | Jan. 28
|
| Settlement date: | Feb. 15
|
| Stock symbol: | Toronto: GCE
|
| Stock price: | C$1.60 at close Jan. 25
|
|
|
| Debenture
|
| Amount: | C$17.5 million
|
| Maturity: | Three years
|
| Coupon: | Canadian Prime rate plus 1.75%
|
| Price: | Par
|
| Conversion price: | C$1.825
|
|
|
| Credit facility
|
| Amount: | C$20 million
|
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