By Devika Patel
Knoxville, Tenn., Dec. 15 - TimberWest Forest Corp. said it has arranged a private placement of 9% convertible debentures for C$100 million with British Columbia Investment Management Corp.
The debentures will mature initially on Feb. 27, 2009, but may mature as late as five years from the settlement date. They will be convertible into stapled units after the initial maturity date and prior to the earlier of the final maturity date and the last business day immediately preceding the date fixed for redemption, if applicable, at a conversion price of C$3.50 per stapled unit.
The debentures are redeemable after three years under certain conditions at a price equal to the principal plus interest.
Proceeds will be used for debt reduction and general corporate purposes.
The company also announced a rights offering under which the company will distribute rights that will entitle existing stapled units holders to buy up to C$50 million in 9% extendible convertible debentures. These debentures have similar terms to those sold in the placement.
The unit holders will receive one right for each stapled unit held. For every 155.53088 rights held, the holder will be entitled to subscribe for C$100 of debentures.
The rights and the debentures will be qualified for distribution in each province of Canada by way of a short form prospectus, and in the United States under a registration statement on Form F-7 to be filed with the Securities and Exchange Commission.
Vancouver, B.C.-based TimberWest is a land management company.
| Issuer: | TimberWest Forest Corp.
|
| Issue: | Convertible debentures, convertible into staple units
|
| Amount: | C$100 million
|
| Maturity: | Feb. 27, 2009, subject to extension
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion price: | C$3.50
|
| Warrants: | No
|
| Investor: | British Columbia Investment Management Corp.
|
| Pricing date: | Dec. 15
|
| Stock symbol: | Toronto: TWF.UN
|
| Stock price: | C$4.47 at close Dec. 12
|
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