By Devika Patel
Knoxville, Tenn., March 18 - Algoma Central Corp. said it increased a bought-deal offering of 6% convertible subordinated debentures to C$60 million with a C$9 million greenshoe. The deal priced for C$50 million with a C$7.5 million greenshoe on Thursday.
The sale is being conducted by a syndicate of underwriters co-led by TD Securities Inc. and CIBC.
The debentures, due March 31, 2018, will be initially convertible at C$154.00 per share and are being sold in C$1,000 increments. The debentures may be called after March 31, 2014, and there are no puts.
The conversion price is a 61.26% premium to the March 16 closing share price of C$95.50.
Settlement is expected April 6.
Proceeds will be used for general corporate purposes, including new vessel construction and the acquisition of a partnership interest in Seaway Marine Transport that the company does not already own, along with related vessels and assets.
The Toronto-based company owns Canada's largest domestic fleet of vessels operating on the Great Lakes-St. Lawrence Waterway.
| Issuer: | Algoma Central Corp.
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$60 million, increased from C$50 million
|
| Greenshoe: | C$9 million, increased from C$7.5 million
|
| Maturity: | March 31, 2018
|
| Underwriters: | TD Securities Inc., CIBC (co-leads)
|
| Coupon: | 6%
|
| Price: | Par of C$1,000
|
| Yield: | 6%
|
| Conversion premium: | 61.26%
|
| Conversion price: | C$154.00
|
| Call: | After March 31, 2014
|
| Warrants: | No
|
| Pricing date: | March 17
|
| Upsized: | March 18
|
| Settlement date: | April 6
|
| Stock symbol: | Toronto: ALC
|
| Stock price: | C$95.50 at close March 16
|
| Market capitalization: | C$357.99 million
|
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