By Rebecca Melvin
New York, Sept. 8 – Liquor Stores NA Ltd. priced C$67.5 million of 5.25-year convertible unsecured subordinated debentures in a bought deal to yield 4.7% with an initial conversion premium of 40%, according to a news release.
The offering was bought by a syndicate of underwriters led by CIBC Capital Markets and National Bank Financial Inc.
The debentures will mature Jan. 31, 2022 and are initially convertible at a price of C$14.60.
The bonds are non-callable until Jan. 31, 2020 and then are provisionally callable for one year if shares exceed 125% of the conversion price. After that, the debentures are freely callable.
Proceeds will be used to redeem Liquor Stores' outstanding 5.85% convertible debentures due April 2018 and for general corporate purposes.
The new debentures were distributed under a short-form prospectus in all the provinces of Canada. It is expected to close, subject to regulatory approvals, by Sept. 29.
Liquor Stores is an operator of liquor stores and is based in Edmonton, Alta.
| Issuer: | Liquor Stores NA Ltd.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$67.5 million
|
| Maturity: | Jan. 31, 2022
|
| Underwriter: | Syndicate led by CIBC Capital Markets and National Bank Financial Inc.
|
| Coupon: | 4.7%
|
| Price: | Par, C$1,000
|
| Yield: | 4.7%
|
| Conversion premium: | 40%
|
| Conversion price: | C$14.60
|
| Calls: | Non-callable until Jan. 31, 2020, then provisionally callable at a price hurdle of 125% until Jan. 31, 2021
|
| Pricing date: | Sept. 8
|
| Settlement date: | Sept. 29
|
| Stock symbol: | Toronto: LIQ
|
| Stock reference price: | C$10.41 at close Sept. 8
|
| Market capitalization: | C$385 million
|
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