Rocky Mountain greenshoe exercised for C$31.5 million in convertibles

By Devika Patel

Knoxville, Tenn., July 27 - Underwriters for Rocky Mountain Dealerships Inc.'s offering of 7% seven-year convertible unsecured subordinated debentures exercised their over-allotment option in full for C$1.5 million more of the debentures, increasing the size of the issue to C$31.5 million, the company said in a press release.

As previously reported, the company sold the debentures at par in a short-form prospectus offering on July 6, via a syndicate of underwriters co-led by National Bank Financial and RBC Capital Markets.

The debentures have a conversion premium of 40% and an initial conversion price of C$10.65.

The debentures will be non-callable until Sept. 30, 2014. They will be callable for the following year if the market stock price is at least 125% of the conversion price.

Proceeds will be used for repayment of a portion of debt, for general corporate purposes and to fund future acquisitions.

Based in Calgary, Alta., Rocky Mountain Dealerships sells and leases agriculture and construction equipment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.