By Rebecca Melvin
Princeton, N.J., Feb. 2 - Canada's Rogers Sugar Income Fund priced C$85 million of seven-year convertibles at par to yield 5.9% with an initial conversion premium of 16.4%, according to a syndicate source.
The bought-deal of convertible unsecured subordinated debentures was sold via bookrunner Scotia Capital Inc. and co-lead manager BMO Nesbitt Burns Inc.
The debentures will be convertible at C$5.10 per unit. They are non-callable for three years, with a soft call between years three and five at a hurdle of at least 125% of the conversion price.
Proceeds will be used to redeem all the outstanding C$85 million principal amount of Rogers' 9.5% convertible unsecured subordinated debentures due June 29, 2007. The redemption is scheduled to take place on March 7.
Montreal-based Rogers Sugar is an open-ended, limited purpose trust.
| Issuer: | Rogers Sugar Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
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| Bookrunner: | Scotia Capital Inc
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| Joint lead manager: | BMO Nesbitt Burns
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| Amount: | C$85 million
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| Maturity: | June 29, 2013
|
| Greenshoe: | None
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| Coupon: | 5.9%
|
| Price: | Par
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| Yield: | 5.9%
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| Conversion premium: | 16.4%
|
| Conversion price: | C$5.10
|
| Conversion ratio: | 196.08
|
| Call features: | Non-callable for three years, with soft call in third through fifth years at 125% of conversion price
|
| Pricing date: | Feb. 2
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