By Kenneth Lim
Boston, Nov. 9 - Canada's Algonquin Power Income Fund on Thursday repriced a postponed and upsized C$60 million offering of 10-year convertible subordinated unsecured debentures at a coupon of 6.2% and an initial conversion premium of 12.36%.
The convertibles were originally offered on Oct. 12 in a C$50 million deal at a coupon of 6.1% and an initial conversion premium of 18.8%. There also was a planned concurrent C$65 million offering of 6.44 million common shares at C$10.10 apiece, but that equity deal has been canceled.
The new initial conversion price is C$11 per common share.
BMO Capital Markets and CIBC World Markets were the bookrunners of the Regulation S offering.
Algonquin, an Oakville, Ont.-based investment trust that owns power generation and infrastructure assets in North America, said the proceeds of the deal will be used to repay loans and for general purposes.
Algonquin postponed the deal on Nov. 1 as Canada's Finance Ministry considered changes to the way income trusts are taxed, and said after a review that it may not complete the deals in light of those possible changes.
| Issuer: | Algonquin Power Income Fund
|
| Issue: | Convertible subordinated unsecured debentures
|
| Bookrunners: | BMO Capital Markets and CIBC World Markets
|
| Amount: | C$60 million
|
| Maturity: | Nov. 30, 2016
|
| Coupon: | 6.2%
|
| Price: | Par
|
| Yield: | 6.2%
|
| Conversion premium: | 12.36%
|
| Conversion price: | C$11
|
| Conversion ratio: | 90.9091
|
| Pricing date: | Nov. 9
|
| Settlement date: | Nov. 22
|
| Distribution: | Regulation S
|
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