Invesque 8.75% convertibles holders OK changes; partial redemption upcoming

By Wendy Van Sickle

Columbus, Ohio, Sept. 26 – Invesque Inc. received approval from holders of its 8.75% convertible debentures due Sept. 30, 2023 of a number of changes to the convertibles, including reducing the principal amount to be redeemed, according to a news release on Tuesday.

The holders’ approval came at a meeting held on Sept. 26, during which an extraordinary resolution containing the amendments passed.

Prior to the resolution, under the indenture dated Aug. 24, 2018, the issuer was required to redeem $22 million of the principal amount outstanding plus accrued interest on Sept. 30, but Invesque was restricted under an amendment entered with its primary credit facility lender from redeeming more than $4,828,000 of the convertibles. With the passage of the amendments, the issuer said it will now redeem the $4,828,000 of convertibles on Oct. 5, which date was pushed out from Sept. 30. The redemption price per $1,000 principal amount will be $1,001.22, reflecting par plus accrued interest.

Holders also approved

• Decreasing the conversion price to $1.10 from $2.75 a share;

• Adding a covenant that Invesque will not make any cash repayment or redemption of principal on its outstanding 7% convertible subordinated debentures due Jan. 31, 2025 whether before, on or after the maturity date of the 7% debentures unless, prior to or contemporaneously with the repayment or redemption of 7% debentures, it redeems or repays for cash an equal principal amount of the 8.75% debentures; and

• Adding a covenant that the company shall not issue a new class or series of unsecured convertible debentures unless the maturity date for those debentures is at least 18 months after Sept. 30, 2026 or senior notes in exchange for, or to fund the cash repayment of, all or a portion of the 7% debentures.

For the amendments be to passed, at least two-thirds of the principal amount of the debentures voted, either in person at the meeting or by proxy, had to be voted in favor of the amendments.

Invesque said the amendments were approved by 90.6% of the principal amount of the debentures voted.

The issuer is a Toronto-based health care real estate company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.