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Venture Life to price £2 million of three-year convertibles at 7%-9%
By Susanna Moon
Chicago, Feb. 12 – Venture Life Group plc said it plans to issue £2 million of three-year convertible bonds with a coupon of 7% to 9%, with proceeds to be used for the planned acquisition of Periproducts Ltd. The issue will be arranged by UK Bond Network, with £1.5 million underwritten.
The bonds will be convertible at a price of 87.5p each, which is a 25% premium to the placement price, according to a company notice.
In addition, some of the company’s directors may participate in the issue to ensure that, along with the £1.5 million of convertibles to be underwritten, at least £1.9 million of convertibles will be issued.
The coupon rate will be determined by participating bond investors through UK Bond Network’s auction process.
The convertible bond may be repaid at any time beginning March 3, 2018, with full repayment due on March 3, 2019.
The issue requires shareholder approval at a meeting set for March 1 in London.
For the convertibles, there is a pre-auction period beginning Feb. 12 for investors to review the offering, followed by a two-week live auction period running from Feb. 17 through March 2, at the end of which the final terms will be set.
Proceeds will be used for the company’s planned acquisition of Periproducts Ltd. for about £5.6 million in cash.
The company also is proposing to place up to 2,428,572 new common shares, representing about 7.1% of the company’s common share capital, to raise up to £1.7 million, of which £800,000 has been firmly committed, the release noted.
The company’s stock (London: VLG) closed at 78.00p at close Feb. 11.
Venture Life is an integrated Bracknell, England-based consumer health care company that develops, manufactures and commercializes branded products addressing the needs of the aging population.
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