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Canadian Royalties calls all 7% convertibles not held by Jien Canada
By Angela McDaniels
Tacoma, Wash., Dec. 10 - Canadian Royalties Inc. will redeem $37,589,000 principal amount of its 7% convertible senior unsecured debentures due March 31, 2015 on Dec. 29, according to a company news release.
The company will pay C$800 per C$1,000 principal amount of convertibles plus accrued interest up to but excluding the redemption date.
The convertibles being redeemed are the convertibles held by investors other than Jien Canada Mining Ltd.
Jien Canada will provide the funds needed to redeem the convertibles.
After the completion of the redemption, the remaining outstanding convertibles will be delisted from the Toronto Stock Exchange.
Canadian Royalties also announced that it will ask shareholders to approve its plan of arrangement with Jien Canada at a special meeting on Dec. 31.
Under the arrangement, Jien Canada will acquire the outstanding shares of the company it does not already own for C$0.80 each.
The plan of arrangement is expected to close Jan. 11, after which time Jien Canada intends to delist Canadian Royalties shares from the Toronto Stock Exchange.
As previously reported, Jien Canada offered to acquire the convertibles for C$800 each.
In October, a group of convertible holders voiced opposition to Jien Canada's tender offer and said that the indenture for the convertibles requires a premium of 1% in the case of a change of control.
Convertible holder Jaguar Financial Corp. said it received verbal confirmation from the holders of the C$44.57 million convertibles of their intent not to tender.
Canadian Royalties is a mineral exploration company based in Montreal.
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