Algoma Central greenshoe raises convertibles to C$82.5 million

New York, June 27 – Algoma Central Corp. said the underwriters of its recent offering of 5.25% convertible unsecured subordinated debentures due 2024 exercised the C$7.5 million over-allotment option in full, raising the size of the sale to C$82.5 million.

The company priced C$75 million of the convertibles on June 1 in a bought deal via CIBC Capital Markets as lead manager of a syndicate that also included Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., GMP Securities LP, Cormark Securities Inc. and Raymond James Ltd.

Conversions will be at a price of C$21.25 per share, equivalent to an initial conversion premium of 60%.

Proceeds will be used to fund the redemption of Algoma’s 6% convertible unsecured subordinated debentures due March 2018 and for general corporate purposes.

Algoma is a Saint Catharines, Ont.-based operator of dry and liquid bulk carriers.

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