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Sprott greenshoe exercised; convertibles increase to C$34.5 million
By Ashley Montgomery
Kansas City, Kan., Aug. 30 - Sprott Power Corp. said the underwriters on its extendible convertible unsecured subordinated debentures exercised their C$4.5 million over-allotment option in full.
With the greenshoe, the total debenture amount is C$34.5 million.
The company said it would use the proceeds from the additional debentures to finance its acquisition of Shear Wind Inc.'s shares.
As announced, the extendible convertibles will yield 6.75% with an initial conversion premium of 32.7% and were bought by a syndicate of underwriters led by Canaccord Genuity Corp. and including TD Securities Inc., National Bank Financial Inc., NCP Northland Capital Partners Inc., Stifel Nicolaus Weisel and Macquarie Capital Markets Canada Ltd.
The debentures will have an initial maturity date of Oct. 15, 2012, extendable at Sprott Power's option to a final maturity of Dec. 31, 2017.
If the acquisition does not close by the initial maturity date, holders will receive the full amount for their debentures plus accrued and unpaid interest.
Each C$1,000 principal amount of debentures will be convertible into about 769.23 common shares of Sprott Power at any time following the acquisition, representing a conversion price of C$1.30 per share.
The debentures are non-callable until Dec. 31, 2015 and then are provisionally callable for one year at a price hurdle of 125%.
There is takeover protection at 101% of the principal amount of the debentures plus accrued and unpaid interest.
The debentures will be distributed under short form prospectus in all provinces of Canada, other than Quebec.
Sprott Power is a Toronto-based renewable energy company.
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