By Rebecca Melvin
New York, Sept. 13 - Vicwest Income Fund priced C$50 million five-year convertible unsecured subordinated debentures with a par value of C$1,000 in a bought deal to yield 6% with a 35% initial conversion premium, according to a news release.
The debentures are being sold via a syndicate of underwriters co-led by Scotia Capital Inc. and National Bank Financial Inc.
At the holder's option, the debentures may be converted into trust units of the fund at a conversion price of C$19.25 per unit.
Proceeds will be used to repay debt and for general corporate purposes.
The Regulation S debentures, direct, unsecured obligations of Vicwest, will be non-callable for three years and then will be provisionally callable between Jan. 1, 2014 and prior to Jan. 1, 2015, at a price hurdle of 125% of the conversion price. After Jan. 1, 2015, Vicwest may, at its option, redeem the debentures at par plus accrued and unpaid interest.
A preliminary short-form prospectus will be filed with securities regulatory authorities in all provinces of Canada, other than Quebec.
Oakville, Ont.-based Vicwest makes building construction products and steel containment products for agricultural grain, fertilizer and liquid storage.
| Issuer: | Vicwest Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$50 million
|
| Maturity: | Dec. 31, 2015
|
| Underwriters: | Syndicate co-led by Scotia Capital and National Bank Financial
|
| Coupon: | 6%
|
| Price: | Par, C$1,000
|
| Yield: | 6%
|
| Conversion premium: | 35%
|
| Conversion price: | C$19.25 per trust unit
|
| Call feature: | Non-callable for three years, then provisionally callable between Jan. 1, 2014 and prior to Jan. 1, 2015 at a price hurdle of 125% of the conversion price. After Jan. 1, 2015, Vicwest may redeem the debentures at par plus accrued interest
|
| Pricing date: | Sept. 13
|
| Settlement date: | Sept. 30
|
| Stock listing: | Toronto: VIC.UN
|
| Stock reference: | C$14.30
|
| Distribution: | Regulation S and short form prospectus
|
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