By Abigail W. Adams
Portland, Me., Dec. 6 – Ag Growth International Inc. priced C$75 million of five-year convertible subordinated debentures at par to yield 4.5% with an initial conversion premium of 65% after the market close on Wednesday, according to a company news release.
CIBC Capital Markets, National Bank Financial Inc. and TD Securities Inc. are the joint bookrunners for the deal, which carries an C$11.25 million greenshoe.
The conversion price is C$88.15 with a conversion rate of 11.3443.
The debentures are non-callable for three years and then are provisionally callable for one year at a 125% hurdle, according to a company news release.
After Dec. 31, 2021, the company has the option to redeem the debentures in whole or in part.
Proceeds from the offering are expected to be C$86.25 million and will be used to redeem Ag Growth’s outstanding 5.25% convertible debentures due Dec. 31, 2018. Ag Growth announced the redemption of the 5.25% debenture concurrently with the new offering.
The redemption will be effective on Jan. 9, according to a company news release.
| Issuer: | Ag Growth International Inc.
|
| Securities: | Convertible unsecured subordinated debentures
|
| Amount: | C$75 million
|
| Greenshoe: | C$11.25 million
|
| Maturity: | Dec. 31, 2022
|
| Bookrunners: | CIBC Capital Markets, National Bank Financial Inc. and TD Securities Inc.
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 65%
|
| Conversion price: | C$88.15
|
| Conversion rate: | 11.3443
|
| Call options: | Non-callable for three years, provisionally callable from Dec. 31, 2020 to Dec. 31, 2021 at a 125% hurdle, from December 2021 until maturity callable in whole or part at company’s option
|
| Pricing date: | Dec. 6
|
| Settlement date: | Jan. 3
|
| Stock symbol: | Toronto: ASN
|
| Stock price: | C$53.43 as of Dec. 6 close
|
| Market capitalization: | C$862.66 million
|
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