By Kenneth Lim
Boston, July 19 - Canada's Versacold Income Fund on Wednesday priced C$60 million of five-year convertible subordinated unsecured debentures at a coupon of 6.75% and an initial conversion premium of 13.26%.
The initial conversion price is C$10.25. Versacold stock closed at C$9.05 on Wednesday on the Toronto Stock Exchange.
CIBC World Markets is the lead underwriter of the deal, which is offered in Canada through a short form prospectus and in the United States under Rule 144A.
The convertibles are non-callable for the first three years and are callable subject to a 125% hurdle in the fourth year. The debentures are freely callable in the fifth year.
Versacold is a Vancouver, B.C.-based trust that invests in public refrigerated warehousing, distribution and related businesses. It will use the proceeds from the deal for internal expansion projects and facility upgrades and for general purposes.
| Issuer: | Versacold Income Fund
|
| Issue: | Convertible subordinated unsecured debentures
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| Lead manager: | CIBC World Markets
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| Amount: | C$60 million
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| Maturity: | Nov. 30, 2011
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| Coupon: | 6.75%
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| Price: | Par
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| Yield: | 6.75%
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| Conversion premium: | 13.26%
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| Conversion price: | C$10.25
|
| Conversion ratio: | 97.561
|
| Call protection: | Non-callable 3 years, subject to 125% hurdle in year 4, freely callable in year 5
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| Pricing date: | July 19
|
| Settlement date: | Aug. 9
|
| Distribution: | Short form prospectus in Canada, Rule 144A in United States
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