By Rebecca Melvin
New York, Aug. 25 – IBI Group Inc. priced C$35 million of five-year convertible unsecured subordinated debentures in a bought deal at par to yield 5.5% with an initial conversion premium of 40%, according to a news release.
The deal was made by a syndicate of underwriters led by National Bank Financial Inc., CIBC World Markets Inc. and TD Securities Inc.
There is an over-allotment option of up to an additional C$5.25 million of debentures.
The debentures have a maturity date of Dec. 31, 2021. They are convertibles at a price of C$8.35 per share which is a conversion rate of 119.7605 common shares.
The bonds are non-callable until Dec. 31, 2019. Thereafter they are provisionally callable for one year, if shares exceed 125% of the conversion price.
Proceeds are intended to fund the partial redemption of the company's 6% convertible debentures maturing on June 30, 2018 and for general corporate purposes. Prior to redeeming the 2018 debentures, the company may use a portion of the net proceeds of the offering to repay existing debt under the company’s senior credit facility, which amount will then be available to be drawn, as required, to fund the partial redemption of the 2018 debentures.
Toronto-based IBI Group is a professional services provider focused on urban development.
| Issuer: | IBI Group Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$35 million
|
| Greenshoe: | C$5.25 million
|
| Maturity: | Dec. 31, 2021
|
| Bookrunners: | Syndicate led by National Bank Financial Inc., CIBC World Markets Inc., TD Securities Inc.
|
| Coupon: | 5.5%
|
| Price: | Par, C$1,000 per bond
|
| Yield: | 5.5%
|
| Conversion premium: | 40%
|
| Conversion price: | C$8.35
|
| Conversion ratio: | 119.7605
|
| Calls: | Non-callable until Dec. 31, 2019, then provisionally callable for one year subject to a 125% price hurdle
|
| Pricing date: | Aug. 25
|
| Settlement date: | Sept. 15
|
| Distribution: | Rule 144A in the U.S. and short-form prospectus in Canadian provinces
|
| Stock symbol: | Toronto: IBG
|
| Stock reference price: | C$9.15, as of close Aug. 25
|
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