By Rebecca Melvin
New York, Feb. 12 - Innergex Renewable Energy Inc. priced C$70 million of extendible unsecured subordinated convertible debentures on a bought-deal basis to yield 5.75% with an initial conversion premium of 35%, according to a news release.
The Regulation S debentures will have an initial maturity date of April 30, 2010, which will automatically be extended to April 30, 2017 upon closing of the company's previously announced strategic combination with Innergex Power Income Fund.
There is a greenshoe for an additional C$10.5 million.
The offering is being made via a syndicate of underwriters led by BMO Capital Markets and TD Securities Inc.
Proceeds from the offering will be used to enhance the combined Innergex's financial flexibility, to reduce existing debt and for general corporate purposes.
Closing is expected by March 8.
Longueil, Quebec-based Innergex is an independent developer and operator of renewable power generating facilities.
| Issuer: | Innergex Renewable Energy Inc.
|
| Issue: | Convertible extendable subordinated debentures
|
| Amount: | C$70 million
|
| Greenshoe: | C$10.5 million
|
| Maturity: | Initially April 30, 2010, extendible to April 30, 2017
|
| Bookrunners: | Syndicate led by BMO Capital Markets and TD Securities Inc.
|
| Coupon: | 5.75%
|
| Price: | Par, C$1,000
|
| Yield: | 5.75%
|
| Conversion premium: | 35%
|
| Conversion price: | C$10.65 per share
|
| Conversion ratio: | 93.8967
|
| Distribution: | Regulation S
|
| Pricing date: | Feb. 12
|
| Settlement date: | March 8
|
| Stock listing: | Toronto: INE
|
| Stock reference: | C$7.90
|
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