By Susanna Moon
Chicago, Dec. 8 - Fortress Paper Ltd. said it boosted the bought-deal public offering of 6.5% five-year convertible debentures by C$5 million to C$35 million just one day after pricing amid strong demand. The over-allotment option is now C$5.25 million, up from C$4.5 million.
The additional notes will be issued on the same terms as the notes that priced Wednesday, according to a company press release.
Fortress Paper priced C$30 million of the convertibles to yield 6.5% with an initial conversion premium of 41.5%.
As previously reported, the Regulation S deal was sold via a syndicate of underwriters led by Raymond James Ltd. and including Canaccord Genuity Corp., Dundee Securities Ltd., RBC Capital Markets, Scotia Capital Inc., TD Securities Inc., Cormark Securities Inc. and Acumen Capital Finance Partners Ltd.
The debentures are convertible at a price of C$37.50 per common share.
The securities are non-callable for three years and then provisionally callable, subject to a 125% price hurdle until maturity.
Proceeds will be used to repay debt, to fund capital expenditures relating to the Fortress Specialty Cellulose Mill, for working capital and for general corporate purposes.
The deal is being sold via a public offering in all the provinces of Canada and is subject to regulatory approval.
Fortress Paper is a producer of security and other specialty papers and is based in North Vancouver, B.C.
| Issuer: | Fortress Paper Ltd.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$35 million, up from C$30 million
|
| Greenshoe: | C$5.25 million, up from C$4.5 million
|
| Maturity: | Dec. 31, 2016
|
| Underwriters: | Syndicate led by Raymond James Ltd. and including Canaccord Genuity Corp., Dundee Securities Ltd., RBC Capital Markets, Scotia Capital Inc., TD Securities Inc., Cormark Securities Inc., Acumen Capital Finance Partners Ltd.
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 41.5%
|
| Conversion price: | C$37.50
|
| Call: | After three years, on Dec. 31. 2014 and then provisionally callable at a 125% price hurdle
|
| Pricing date: | Dec. 7
|
| Upsized: | Dec. 8
|
| Settlement date: | Dec. 22
|
| Distribution: | Short-form prospectus in all Canadian provinces
|
| Stock symbol: | Toronto: FTP
|
| Stock price: | C$26.50
|
| Market capitalization: | C$378.9 million
|
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