By Devika Patel
Knoxville, Tenn., Aug. 11 - MEGA Brands Inc. said it will raise up to C$75 million by selling 8% senior unsecured convertible debentures in a private placement.
Financial Holdings Ltd. will buy C$64 million of the debentures, Victor J. Bertrand Sr., the company's founder and chairman of the board of directors, will buy C$7 million. Chiefswood Holdings Ltd. and the Owners Fund will also participate in the placement.
The debentures mature on Aug. 31, 2013. They pay interest semi-annually in arrears.
The debentures will be convertible into 23,512,500 common shares.
BMO Capital Markets is the agent.
Settlement is expected Aug. 19.
MEGA Brands is a Montreal-based maker of plastic building blocks and other toys, games as well as arts and crafts supplies.
| Issuer: | MEGA Brands Inc.
|
| Issue: | Senior unsecured convertible debentures
|
| Amount: | C$75 million
|
| Maturity: | Aug. 31, 2013
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion ratio: | Into 23,512,500 shares
|
| Warrants: | No
|
| Agent: | BMO Capital Markets
|
| Investors: | Financial Holdings Ltd. (for C$64 million), Victor J. Bertrand Sr. (for C$7 million), Chiefswood Holdings Ltd., Owners Fund
|
| Pricing date: | Aug. 11
|
| Settlement date: | Aug. 19
|
| Stock symbol: | Toronto: MB
|
| Stock price: | C$2.99 at close Aug. 8
|
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