By Jennifer Chiou and Angela McDaniels
New York, May 13 - Neo Material Technologies Inc. announced the increase of its recently priced 5% convertible subordinated debentures due Dec. 31, 2017 to $200 million from $175 million.
There is now an over-allotment option for $30 million of additional convertibles, augmented from $26.25 million.
As already reported, the conversion price is $13.80, which is a 37.72% premium over the company's closing share price on Thursday.
RBC Capital Markets LLC and Scotia Capital Inc. are the lead underwriters, and they have until 30 days after closing to exercise the greenshoe.
Beginning Jan. 1, 2015, the convertibles are callable at any time if the volume-weighted average price of the company's shares on the Toronto Stock Exchange (converted into U.S. dollars) is 125% of the conversion price for 20 consecutive trading days. Beginning Jan. 1, 2017, the convertibles are callable at any time.
Proceeds will be used to fund potential future acquisitions and for general corporate purposes.
Neo Material Technologies is based in Toronto and makes neodymium-iron-boron magnetic powders, rare earths and zirconium-based engineered materials and applications.
| Issuer: | Neo Material Technologies Inc.
|
| Issue: | Convertible subordinated debentures
|
| Amount: | $200 million (up from $175 million)
|
| Greenshoe: | $30 million (up from $26.25 million)
|
| Maturity: | Dec. 31, 2017
|
| Underwriters: | RBC Capital Markets LLC and Scotia Capital Inc. (leads)
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion price: | $13.80
|
| Conversion premium: | 37.72%
|
| Conversion ratio: | 72.4638
|
| Call option: | Beginning Jan. 1, 2015 subject to 125% hurdle; at any time from Jan. 1, 2017 onward
|
| Pricing date: | May 12
|
| Upsize date: | May 13
|
| Settlement date: | June 2
|
| Stock symbol: | Pink Sheets: NEMFF
|
| Stock price: | $10.02 at close May 12
|
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