Main investors for upsized non-brokered deal are major shareholders
By Marisa Wong
Madison, Wis., Sept. 4 – Imperial Metals Corp. said it closed a C$115 million non-brokered private placement of senior convertible debentures.
The company initially priced C$100 million of 6% six-year convertibles, as announced on Aug. 14.
Subject to adjustment, each C$12.00 face amount is convertible into one share of Imperial common stock upon at least 61 days advance notice. The conversion price represents a 27.52% premium over the Aug. 13 closing share price of C$9.41.
The debentures are not callable unless the closing price of Imperial’s shares exceeds 125% of the conversion price for at least 30 consecutive days.
The debentures provide the company with additional financing to complete and commission the Red Chris mine, to fund costs of remediating the effects of the tailings dam breach at the Mount Polley mine and to fund ongoing operations.
Edco Capital Corp. and Fairholme Partnership, LP each purchased C$40 million, or 34.8%, of the convertibles. Edco is owned by N. Murray Edwards, a significant shareholder of Imperial. Fairholme and parties related to it are also significant shareholders of the company.
Imperial is an exploration, mine development and operating company based in Vancouver, B.C.
| Issuer: | Imperial Metals Corp.
|
| Issue: | Senior convertible debentures
|
| Amount: | C$115 million
|
| Maturity: | Six years
|
| Coupon: | 6%
|
| Conversion price: | C$12.00
|
| Call option: | Provisionally at 125% hurdle
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | Aug. 14
|
| Settlement date: | Sept. 3
|
| Stock symbol: | TSX Venture: III
|
| Stock price: | C$9.41 at close Aug. 13
|
| Market capitalization: | C$707.61 million
|
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