By Rebecca Melvin
Princeton, N.J., Nov. 28 - Canada's Newport Partners Income Fund priced C$75 million of five-year convertibles in a bought deal to yield 7.5% with an initial conversion premium of 15%, according to a syndicate source.
The unsecured subordinated convertible debentures, which were bought by RBC Capital Markets, include an option to purchase an additional C$10 million of debentures.
The debentures are non-callable for three years and include a change-of-control put.
The fund will use proceeds to retire debt under its credit facility and to increase its capacity to fund additional investments in the near term, the company said in a press release.
The fund, based in Toronto, holds a 33% interest in Newport Private Yield LP and is in the asset management business.
| Issuer: | Newport Partners Income Fund
|
| Issue: | Unsecured subordinated convertible debentures
|
| Bookrunner: | RBC Capital Markets
|
| Amount: | C$75 million
|
| Greenshoe: | C$10 million
|
| Maturity: | Dec. 31, 2010
|
| Coupon: | 7.5%
|
| Price: | Par
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| Yield: | 7.5%
|
| Conversion premium: | 15%
|
| Conversion price: | C$9.50
|
| Conversion ratio: | 105.2632
|
| Call: | Non-callable for three years
|
| Put: | No puts, except for change of control
|
| Pricing date: | Nov. 28
|
| Settlement date: | Dec. 12
|
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