By Abigail W. Adams
Portland, Me., Dec. 6 – Fiera Capital Corp. priced C$75 million in convertible unsecured subordinated debentures due June 2023 to yield 5% with an initial conversion premium of 40% after the market close Tuesday, according to a company release.
National Bank Financial Inc., Desjardins Capital Markets and Scotiabank were joint bookrunners for the convertible debentures which carries a greenshoe of C$11.25 million.
The debentures are non-callable until June 2021 and then provisionally callable until they mature in June 2023, according to the company release.
The conversion price is C$18.85 per share at a conversion ratio of 53.0504.
The new issue was priced alongside a bought deal for 5,770,000 of class A subordinate voting shares in the company for C$13 per share.
National Bank Financial Inc., Desjardins Capital Markets and GMP Securities L.P. were joint bookrunners for the bought deal which carries an over-allotment option of 577,000 class A shares.
Fiera anticipates that the convertible and stock sales will raise net proceeds of C$150 million or C$168.75 million if the over-allotment options are exercised, according to the company release.
Proceeds will be used to fund current and future acquisitions, pay down debt, and for general corporate purposes.
Fiera’s senior debt to adjusted EBITDA ratio was 3.57x. The offering will reduce the debt level to 2.40x or 2.25x if the over-allotment options are exercised.
Fiera Capital is Montreal-based independent asset management firm with more than C$123 billion under management.
| Issuer: | Fiera Capital Corp.
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| Securities: | Convertible unsecured subordinated debentures
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| Amount: | C$75 million
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| Greenshoe: | C$11.25 million
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| Maturity: | June 30, 2023
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| Bookrunners: | National Bank Financial Inc., Desjardins Capital Markets and Scotiabank
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| Coupon: | 5%
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| Price: | Par
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| Conversion premium: | 40%
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| Conversion price: | $18.85
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| Conversion rate: | 53.0504
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| Call options: | Provisional call from June 2021
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| Pricing date: | Dec. 5
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| Stock symbol: | TSE: FSZ
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| Stock price: | $13.44 as of Dec. 5 close
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| Market capitalization: | $1.085 billion
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