By Stephanie N. Rotondo
Seattle, May 30 – Automotive Finco Corp. will raise up to C$30 million via offerings of 6.75% convertible unsecured subordinated debentures due June 30, 2022, the company said in a press release on Tuesday.
The company is selling C$10 million on a bought-deal basis through a group of underwriters led by Canaccord Genuity Corp. Another C$20 million of the debentures will be sold through a non-brokered private placement.
The bought-deal includes a C$1.5 million over-allotment option.
Additionally, the company is selling up to 3.7 million common shares at C$2.70 per share. The underwriters will have a greenshoe for up to 370,500 more shares.
The notes are convertible at C$3.50 per share, an initial conversion premium of 22.8%.
The company can redeem the notes after June 30, 2019 at 103% of par, at 102% of par after June 30, 2020 and at 101% of par after June 30, 2021.
Proceeds will be used to fund an investment in affiliate companies and for general corporate and working capital purposes.
Automotive Finco is a Toronto-based investment company.
| Issuer: | Automotive Finco Corp.
|
| Securities: | Convertible unsecured subordinated debentures
|
| Amount: | C$30 million
|
| Maturity: | June 30, 2022
|
| Dividend: | 6.75%
|
| Price: | Par of C$1,000
|
| Yield: | 6.75%
|
| Conversion premium: | 22.8%
|
| Conversion price: | $3.50 per share
|
| Call options: | At 103% of par after June 30, 2019, at 102% of par after June 30, 2020 and at 101% of par after June 30, 2021
|
| Pricing date: | May 30
|
| Settlement date: | June 20
|
| Stock symbol: | TSX: AFCC
|
| Stock price: | C$2.85 as of May 29 close
|
| Market capitalization: | C$53.091 million
|
|
|
| Bought-deal
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| Amount: | C$10 million
|
| Greenshoe: | C$1.5 million
|
| Bookrunner: | Canaccord Genuity Corp.
|
|
|
| Private placement
|
| Amount: | C$20 million
|
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