By Toni Weeks
San Luis Obispo, Calif., Nov. 14 - Loyalist Group Ltd. priced an issue of C$5 million principal amount of 7.5% unsecured subordinated convertible debentures due Nov. 30, 2018.
The bought-deal issue was led by Beacon Securities Ltd. and includes an over-allotment option for an additional C$500,000 of convertibles.
Proceeds will be used to support general working capital as well as to provide the base for potential accretive acquisition opportunities.
The conversion price is C$0.60 per share, a 31.87% premium to the closing share price of C$0.455 on Nov. 13.
The notes are callable, and they are putable in the event of a change of control.
Upon redemption or at maturity, the company may satisfy its obligation to pay the principal amount in common shares.
Settlement is expected on Dec. 5.
Toronto-based Loyalist owns and operates private education schools in Canada.
| Issuer: | Loyalist Group Ltd.
|
| Issue: | Unsecured subordinated convertible debentures
|
| Amount: | C$5 million
|
| Greenshoe: | C$500,000
|
| Maturity: | Nov. 30, 2018
|
| Underwriter: | Beacon Securities Ltd. (lead)
|
| Coupon: | 7.5%, payable semiannually
|
| Conversion premium: | 31.87%
|
| Conversion price: | $0.60
|
| Pricing date: | Nov. 14
|
| Settlement date: | Dec. 5
|
| Stock symbol: | TSX Venture: LOY
|
| Stock price: | C$0.455 at close Nov. 13
|
| Market capitalization: | C$60.68 million
|
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