Aphria greenshoe lifts five-year 5.25% convertibles to $350 million

By Wendy Van Sickle

Columbus, Ohio, April 23 – Underwriters for Aphria Inc.’s 5.25% convertible notes due June 1, 2024 fully exercised their $50 million greenshoe, increasing the total deal size to $350 million, according to a Tuesday evening press release.

The company priced $300 million of the convertibles after the market close on April 18 at par an initial conversion premium of 20%, as previously reported.

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.

The greenshoe had been upsized from talk of $45 million initially.

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.

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