By Rebecca Melvin
New York, March 13 - WesternOne Inc. priced C$40 million of 7.25-year convertibles on a bought deal basis at par to yield 6.25% with an initial conversion premium of 31%, according to a news release.
The Regulation S offering was bought by a syndicate of underwriters co-led by Dundee Securities Ltd. and Scotiabank, and including Canaccord Genuity Corp., National Bank Financial Inc., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., M Partners Inc. and Sora Group Wealth Advisors Inc.
The debentures, which mature June 30, 2020, are convertible at the holder's option at a conversion price of C$11.75 per share.
The debentures are non-callable until June 30, 2016 and then are provisionally callable until June 30, 2018, if the price of shares exceeds 125% of conversion.
There is an over-allotment option of C$6 million.
Proceeds will be used to pay down existing credit facilities and for general corporate purposes, including working capital.
The debentures will be offered in all provinces of Canada (except Quebec) by way of a short form prospectus. Closing April 4 is subject to regulatory approvals, including approval of the Toronto Stock Exchange.
Vancouver, B.C.-based WesternOne acquires and grows businesses in the construction and infrastructure services sectors.
| Issuer: | WesternOne Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$40 million
|
| Greenshoe: | C$6 million
|
| Maturity: | June 30, 2020
|
| Bookrunners: | Syndicate co-led by Dundee Securities Ltd. and Scotiabank, and including Canaccord Genuity Corp., National Bank Financial Inc., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., M Partners Inc. and Sora Group Wealth Advisors Inc.
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 31%
|
| Conversion price: | C$11.75
|
| Conversion ratio: | 85.1064
|
| Calls: | Non-callable until June 30, 2016, then provisionally callable until June 30, 2018, if shares exceed 125%
|
| Pricing date: | March 13
|
| Settlement date: | April 4
|
| Stock symbol: | Toronto: WEQ
|
| Stock price: | C$9.99 at close March 13
|
| Distribution: | Regulation S
|
| Market capitalization: | C$198.1 million
|
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