By Cristal Cody
Prospect News, Feb. 1 - RONA Inc. said Tuesday that it priced an upsized C$150 million offering of series 6 class A 5.25% cumulative rate reset five-year preferred shares (/P-3/DBRS: Pfd-3).
The company announced earlier it had sold C$125 million of the preferreds.
Under the deal, RONA sold 6 million shares at C$25.00 per share. RONA also increased the over-allotment option by 150,000 shares to 900,0000 shares.
The preferreds are redeemable at RONA's option on March 31, 2016 and every fifth year thereafter. After the initial five-year period ends, the dividend rate will be reset to the then current five-year Government of Canada bond yield plus 265 basis points.
National Bank Financial Inc. and BMO Capital Markets Corp. were the joint bookrunners.
The proceeds will be used to reduce debt, to contribute to funding future acquisitions and capital projects and for general corporate purposes.
The Boucherville, Quebec-based RONA is Canada's largest hardware and gardening retailer and distributor.
| Issuer: | RONA Inc.
|
| Amount: | C$150 million (6 million shares), increased from C$125,000
|
| Greenshoe: | 900,000 shares, increased from 750,000
|
| Maturity: | March 31, 2016
|
| Securities: | Cumulative rate reset five-year preferred shares
|
| Bookrunners: | National Bank Financial Inc., BMO Capital Markets Corp.
|
| Dividend: | 5.25%
|
| Price: | C$25.00 per share
|
| Yield: | 5.25%
|
| Call: | On March 31, 2016 and every five years thereafter
|
| Pricing date: | Feb. 1
|
| Settlement date: | Feb. 22
|
| Ratings: | Standard & Poor's: P-3
|
| DBRS: Pfd-3
|
| Distribution: | Canada
|
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