By Rebecca Melvin
New York, May 15 - New Flyer Industries Inc. priced $65 million of five-year convertible unsecured subordinated debentures at par of $1,000 on a bought deal basis to yield 6.25%, according to a news release.
The Regulation S offering was being made through a syndicate of underwriters led by BMO Capital Markets and CIBC World Markets Inc.
The company has also granted the underwriters an option to purchase up to $9.75 million.
Proceeds will be used to redeem all of the about C$60 million 14% subordinated notes of New Flyer Industries Canada ULC held by the public and those held separately, and for general corporate purposes.
Following the redemption of the subordinated notes in August 2012, the IDSs will be delisted from the Toronto Stock Exchange and the common shares forming part of an IDS will commence trading separately and continue to be listed on the exchange.
The offering is expected to close June 5, 2012.
The debentures will be convertible into shares at a conversion price of $10 per share.
The debentures are non-callable until June 30, 2015 and then are provisionally callable at a price hurdle of 125%.
The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange.
New Flyer makes heavy-duty transit buses and is based in Winnipeg, Man.
| Issuer: | New Flyer Industries Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | $65 million
|
| Greenshoe: | $9.75 million
|
| Maturity: | June 30, 2017
|
| Bookrunners: | BMO Capital Markets, CIBC World Markets Inc.
|
| Coupon: | 6.25%
|
| Price: | Par, $1,000
|
| Yield: | 6.25%
|
| Initial conversion price: | $10.00
|
| Calls: | Non-callable until June 30, 2015, then provisionally callable at a price hurdle of 125%
|
| Pricing date: | May 15
|
| Settlement date: | June 5
|
| Distribution: | Regulation S
|
| Stock symbol: | Toronto: NFI
|
| Stock reference price: | C$7.13 as of close May 15
|
| Market capitalization: | C$316.42 million
|
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