By Wendy Van Sickle
Columbus, Ohio, March 29 – Ag Growth International Inc. priced C$100 million 5.2% convertible subordinated debentures due 2027 in a bought deal, according to a company press release.
CIBC Capital Markets led the offering.
The convertible debentures priced at par and carry a conversion price of C$70.50, which is a 60% premium over the stock’s closing price on March 29, and a conversion ratio of 14.1844.
The deal, which will be marketed via short form prospectus in each province of Canada with the exception of Quebec, carries a greenshoe of C$15 million.
The convertibles are non-callable until Dec. 31, 2025 and then subject to a 125% hurdle until Dec. 31, 2026, when they will become callable at par regardless of the trading price of the shares.
Proceeds will be used to fund the redemption of the 4.5% convertible debentures due Dec. 31, 2022 and for general corporate purposes.
Ag Growth is a Winnipeg, Man.-based equipment and technology company supporting global food infrastructures.
| Issuer: | Ag Growth International Inc.
|
| Amount: | C$100 million
|
| Greenshoe: | C$15 million
|
| Issue: | Convertible subordinated debentures
|
| Maturity: | Dec. 31, 2027
|
| Bookrunner: | CIBC Capital Markets
|
| Coupon: | 5.2%
|
| Price: | Par
|
| Yield: | 5.2%
|
| Conversion premium: | 60%
|
| Conversion price: | C$70.50
|
| Conversion rate: | 14.1844
|
| Call options: | Non-callable until Dec. 31, 2025 and then subject to a 125% hurdle until Dec. 31, 2026, when they will become callable at par regardless of the trading price of the shares
|
| Pricing date: | March 29
|
| Settlement date: | April 19
|
| Distribution: | Short form prospectus
|
| Stock symbol: | TSX: AFN
|
| Stock price: | C$44.05 at market close March 29
|
| Market capitalization: | C$827.86 million
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