Aphria talks $300 million five-year convertible notes to yield 4.75%-5.25%, up 20%-25%

By Abigail W. Adams

Portland, Me., April 17 – Aphria Inc. plans to price $300 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 4.75% to 5.25% and an initial conversion premium of 20% to 25%, according to a market source.

J.P. Morgan Securities LLC, Jefferies & Co. and Canaccord Genuity Corp. are joint bookrunners for the Rule 144A and Regulation S offering, which carries a greenshoe of $45 million.

The notes are non-callable for three years and then subject to a 130% hurdle with a make-whole.

There is takeover and dividend protection.

Proceeds will be used for international expansion initiatives, future acquisitions and general corporate purposes.

Aphria is a Leamington, Ont.-based global cannabis company.

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