By Rebecca Melvin
New York, Sept. 13 - Superior Plus Corp. priced C$75 million of five-year convertible subordinated debentures on a bought-deal basis at par to yield 7.5% with an initial conversion premium of 21%, according to a company news release.
There is an over-allotment option for an additional C$11.25 million of debentures.
The issue was made via a syndicate of underwriters co-led by CIBC, BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc. and including Cormark Securities Inc.
Proceeds will be used to fund the redemption of about C$75 million of its previously issued 5.75% convertible subordinated debentures due Dec. 31, 2012 of which there are about C$175 million outstanding.
The initial conversion price of the new convertibles is C$11.35 per common share.
The debentures are non-callable for until Oct. 31, 2014 and then provisionally callable for two years subject to a 125% price hurdle. After that, they are freely callable.
Superior is a Calgary, Alta.-based marketer of propane, propane-burning appliances and related support services.
| Issuer: | Superior Plus Corp.
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$75 million
|
| Greenshoe: | C$11.25 million
|
| Maturity: | Oct. 31, 2016
|
| Underwriters: | CIBC, BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc. (co-leads) and Cormark Securities Inc.
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion premium: | 21%
|
| Conversion price: | C$11.35
|
| Conversion ratio: | 88.1057
|
| Call option: | Non-callable until Oct. 31, 2014, then provisionally callable for two years subject to 125% price hurdle
|
| Pricing date: | Sept. 13
|
| Settlement date: | Oct. 4
|
| Stock listing: | Toronto: SPB
|
| Stock price: | C$9.35
|
| Market cap: | C$1.02 billion
|
© 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.
