Proceeds used to repay 7.75% convertible debentures due Dec. 31, 2011
By Devika Patel
Knoxville, Tenn., April 11 - Imvescor Restaurant Group Inc. said it arranged a C$10 million private placement of senior unsecured debentures and a C$15 million placement of stock with Fairfax Financial Holdings Ltd.
The company will sell C$10 million of the 10% debentures, which mature in five years. The securities will be accompanied by 15,384,000 warrants, which are each exercisable at C$0.65 for five years. The strike price reflects a 30% premium to the Oct. 14 closing share price of C$0.50.
In the C$15 million shares sale, up to 26,757,523 common shares will be issued at a price equal to the lesser of the volume-weighted average trading price for the 20 trading day period prior to the offering's announcement and C$0.65 per share.
Settlement is expected Dec. 20.
Proceeds will be used to repay the company's 7.75% convertible extendible unsecured subordinated debentures due Dec. 31, 2011 and provide ongoing working capital.
Following settlement, Fairfax will own 26,757,523 company common shares, or about 73.9% of the outstanding stock. In addition, Fairfax will be entitled to designate at least 40% of the members and the chair of the company's board of directors.
The Moncton, N.B., company operates four Canadian restaurant brands.
| Issuer: | Imvescor Restaurant Group Inc.
|
| Issue: | Senior unsecured debentures, common stock
|
| Amount: | C$25 million
|
| Investor: | Fairfax Financial Holdings Ltd.
|
| Pricing date: | Oct. 17
|
| Settlement date: | Dec. 20
|
| Stock symbol: | Toronto: IRG
|
| Stock price: | C$0.50 at close Oct. 14
|
| Market capitalization: | C$5.67 million
|
|
|
| Debentures
|
| Amount: | C$10 million
|
| Maturity: | Five years
|
| Coupon: | 10%
|
| Warrants: | 15,384,000
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.65
|
|
|
| Stock
|
| Amount: | C$15 million
|
| Shares: | Up to 26,757,523 shares
|
| Price: | The lesser of the volume weighted average trading price for the 20 trading day period prior to the offering's announcement and C$0.65 per share
|
| Warrants: | No
|
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