By Rebecca Melvin
New York, Dec. 6 - Parkland Income Fund priced C$45 million of five-year convertible unsecured subordinated debentures on a bought-deal basis at par to yield 5.75% with an initial conversion premium of 60%, according to a news release.
The issue was made via a syndicate co-led by Scotia Capital Inc. and RBC Capital Markets and including CIBC World Markets Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Canaccord Genuity Corp., Dundee Securities Inc. and PI Financial Corp.
As previously disclosed, the fund intends to complete a conversion to a corporation to be named Parkland Fuel Corp. by Dec. 31. If the conversion doesn't occur by Jan. 1, 2011, the debentures will be convertible into fully paid and non-assessable trust units of the fund at the same conversion price.
The initial conversion price is C$18.00 per common share.
The convertibles are non-callable until Dec. 31, 2013 and then provisionally callable for one year at 125% of the conversion price. After Dec. 31, 2014, the bonds can be redeemed at par plus accrued interest.
Proceeds will be used to repay outstanding debt, to finance current and future growth opportunities 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$45 million
|
| Maturity: | Dec. 31, 2015
|
| Underwriters: | Syndicate co-led by Scotia Capital Inc. and RBC Capital Markets and including CIBC World Markets Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Canaccord Genuity Corp., Dundee Securities Inc. and PI Financial Corp.
|
| Coupon: | 5.75%
|
| Price: | Par, C$1,000
|
| Yield: | 5.75%
|
| Conversion premium: | 60%
|
| Conversion price: | C$18.00
|
| Conversion ratio: | 55.5556 common shares
|
| Calls: | Non-callable until Dec. 31, 2013, then provisionally callable at 125% for one year; thereafter at par plus accrued interest
|
| Puts: | No puts
|
| Pricing date: | Dec. 6
|
| Settlement date: | Dec. 21
|
| Stock listing: | TSX: PKI.UN
|
| Stock reference: | C$11.25
|
| Distribution: | Short form prospectus in Canada except Quebec
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