New York, Nov. 25 - Versacold Income Fund said the underwriters of its offering of convertible unsecured subordinated debentures exercised the C$15 million over-allotment option in full, raising the size of the deal to C$115 million.
The Vancouver, B.C.-based operator of temperature-controlled facilities originally priced C$100 million of the securities after the close on Nov. 17. They have a 7% coupon and convert at C$8.35.
Scotia Capital Inc. was lead manager. The syndicate also included TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc. and Raymond James Ltd.
At the same time, Versacold sold 3.4 million subscription receipts for trust units, also including exercise of the greenshoe, in this case for 0.4 million receipts, raising C$25.5 million. The syndicate was the same for the subscription receipt offering.
Proceeds from the two offerings along with borrowings under a new credit facility and a $60 million private placement of debentures to an affiliate of the Peninsular and Oriental Steam Navigation Co. will be used to finance Versacold's acquisition of P&O Cold Logistics, the public refrigerated warehousing and distribution business of P&O. Closing is scheduled for Dec. 15.
| Issuer: | Versacold Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$115 million (includes C$15 million greenshoe)
|
| Maturity: | March 31, 2006, extends to Dec. 31, 2010 on closing of acquisition
|
| Coupon: | 7%
|
| Conversion price: | C$8.35
|
| Conversion ratio: | 119.7605
|
| Lead manager: | Scotia Capital Inc.
|
| Distribution: | Short-form prospectus in Canada
|
| Listing: | "ICE.DB.B" on Toronto Stock Exchange
|
|
|
© 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.
