By Rebecca Melvin
New York, April 25 - Leisureworld Senior Care Corp. priced C$46 million extendible convertible debentures on a bought-deal basis to yield 4.65% and with an initial conversion premium of 35%, according to company news releases.
Leisureworld also priced 6.35 million subscription receipts at C$12.40 per receipt for total proceeds of C$124.79 million.
Proceeds from both offerings will be used to finance in part the acquisition of a portfolio of properties in Ontario from Specialty Care Inc. for C$254 million.
If the acquisition closes by Jan. 2, 2014, the convertibles' maturity will be automatically extended to June 30, 2018.
The offerings were underwritten by a syndicate led by TD Securities Inc.
The Regulation S debentures are not callable until June 30, 2016, and then they are provisionally callable for one year if shares trade at more than 125% of the conversion price for 20 out of 30 trading days. After June 30, 2017, the debentures are freely convertible.
Markham, Ont.-based Leisureworld owns and operates health care-related senior facilities and provides nursing, health care aids and support workers for the facilities.
| Issuer: | Leisureworld Senior Care Corp.
|
| Issue: | Extendible convertible unsecured subordinated debentures
|
| Amount: | C$46 million, including C$6 million greenshoe
|
| Maturity: | Jan. 2, 2014, extending automatically to June 30, 2018 upon acquisition closing
|
| Concurrent offering: | About $79 million subscription receipts at C$12.40 each
|
| Bookrunners: | Syndicate led by TD Securities Inc.
|
| Coupon: | 4.65%
|
| Price: | Par, C$1,000
|
| Yield: | 4.65%
|
| Conversion premium: | 35%
|
| Conversion price: | C$16.75
|
| Conversion ratio: | 59.7015
|
| Calls: | Non-callable until June 30, 2016, then provisionally callable until June 30, 2017 at 125%
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Settlement date: | April 25
|
| Stock symbol: | Toronto: LW
|
| Distribution: | Regulation S
|
| Market capitalization: | C$381.55 million
|
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