By Abigail W. Adams
Portland, Me., April 18 – Aphria Inc. priced $300 million of five-year convertible notes after the market close on Wednesday at par with a coupon of 5.25% and an initial conversion premium of 20%, according to a company news release.
The notes priced on the cheap end of talk for a coupon of 4.75% to 5.25% and an initial conversion premium of 20% to 25%, according to a market source.
Jefferies & Co. (lead left), J.P. Morgan Securities LLC and Canaccord Genuity Corp. were joint bookrunners for the Rule 144A and Regulation S offering, which carries an upsized greenshoe of $50 million.
The initial size of the greenshoe was $45 million.
The notes are contingently convertible until Dec. 1, 2023. They are non-callable until June 6, 2022 and then subject to a 130% hurdle with a make-whole.
There is takeover and dividend protection. The notes will be settled in cash, shares or a combination thereof.
Proceeds will be used for international expansion initiatives, future acquisitions and general corporate purposes.
Aphria is a Leamington, Ont.-based global cannabis company.
| Issuer: | Aphria Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $300 million
|
| Greenshoe: | $50 million
|
| Maturity: | June 1, 2024
|
| Bookrunners: | Jefferies & Co. (lead left), J.P. Morgan Securities LLC and Canaccord Genuity Corp.
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 20%
|
| Conversion price: | $9.38
|
| Conversion rate: | 106.5644
|
| Call options: | Non-callable until June 6, 2022 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | April 17
|
| Settlement date: | April 23
|
| Distribution: | Rule 144A and Regulation S
|
| Talk: | Coupon of 4.75% to 5.25% and an initial conversion premium of 20% to 25%
|
| Stock symbol: | NYSE: APHA
|
| Stock price: | $7.82
|
| Market capitalization: | $1.96 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
