By Rebecca Melvin
New York, June 14 - Yellow Media Inc., a subsidiary of Yellow Pages Income Fund, is issuing C$200 million of seven-year convertible debentures on a bought-deal basis to yield 6.25% with an initial conversion premium of 29%, according to a news release.
RBC Capital Markets, TD Securities and Scotia Capital are acting as joint bookrunners of the bought deal, which will have an over-allotment option of C$30 million of additional notes.
The debentures will be convertible for trust units of the fund at an exchange price of C$8 per unit.
Proceeds will be used by the issuer to repay debt, including the issuer's commercial paper program, and to fund redemption of the issuer's outstanding 5.5% exchangeable debentures and for general corporate purposes.
Yellow Pages Income Fund is a Montreal-based fund owning a 96% ownership interest in Yellow Pages Group and Trader Corp.
| Issuer: | Yellow Media Inc.
|
| Underlying: | Yellow Pages Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$200 million
|
| Greenshoe: | C$30 million
|
| Bookrunners: | RBC Capital Markets, TD Securities, Scotia Capital
|
| Maturity: | Oct. 1, 2017
|
| Coupon: | 6.25%
|
| Conversion premium: | 29%
|
| Conversion price: | C$8
|
| Pricing date: | June 14
|
| Settlement date: | July 8
|
| Reference stock price: | C$6.20
|
| Distribution: | Short form prospectus in Canada
|
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