Liquor Stores greenshoe ups 5.25-year convertibles to C$77.6 million

By Susanna Moon

Chicago, Oct. 4 – Liquor Stores NA Ltd. said underwriters fully exercised the C$10,125,000 over-allotment option on its 4.7% 5.25-year convertible unsecured subordinated debentures.

The greenshoe exercise brings the total deal size to C$77,625,000, according to a company update.

As reported, Liquor Stores priced C$67.5 million of the convertibles on Sept. 8 to yield 4.7% with an initial conversion premium of 40%.

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.

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