By Angela McDaniels
Tacoma, Wash., Nov. 10 - Parkland Income Fund said it increased its offering of 6.5% convertible unsecured subordinated debentures to C$85 million from C$75 million and the over-allotment option to C$12.75 million of additional debentures from C$11.25 million.
The company announced the offering on Monday.
The convertibles are being sold on a bought-deal basis through a syndicate of underwriters led by CIBC and including TD Securities Inc., RBC Capital Markets, Scotia Capital Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc. and Dundee Securities Corp.
The convertibles will be issued at par with an initial conversion premium of 30%.
The initial conversion price is C$14.60 per trust unit.
The convertibles are non-callable until Nov. 30, 2012. They are then provisionally callable for one year at par if the market price of the company's trust units is 125% of the conversion price or more. Beginning Nov. 30, 2013, the convertibles can be called at par.
Proceeds are expected to be used to repay outstanding bank debt and for general corporate purposes.
The Red Deer, Alta.-based trust operates retail and wholesale fuels and convenience store businesses.
| Issuer: | Parkland Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$85 million, increased from C$75 million
|
| Greenshoe: | C$12.75 million, increased from C$11.25 million
|
| Maturity: | Nov. 30, 2014
|
| Bookrunners: | CIBC (lead), TD Securities Inc., RBC Capital Markets, Scotia Capital Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., Dundee Securities Corp.
|
| Coupon: | 6.5%
|
| Price: | Par of C$1,000
|
| Yield: | 6.5%
|
| Conversion premium: | 30%
|
| Conversion price: | C$14.60
|
| Conversion ratio: | 68.49315
|
| Call option: | Non-callable until Nov. 30, 2012, then provisionally callable for one year at par if trust unit price is at least 125% of conversion price; thereafter at par
|
| Put option: | None
|
| Pricing date: | Nov. 9
|
| Settlement date: | Dec. 1
|
| Stock symbol: | Toronto: PKI.UN
|
| Stock price: | C$11.23 at close Nov. 9
|
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