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Optiva gets approval to amend indenture of 9¾% PIK toggle debentures
By Wendy Van Sickle
Columbus, Ohio, July 5 – Optiva Inc. said it has obtained the requisite shareholder approval to amend the terms of its outstanding 9¾% five-year secured PIK toggle debentures, according to a news release.
The approved amendments are to remove the restrictions on the aggregate amount of cash interest payable to certain insiders of the company in respect of the debentures held by such insiders.
Under the existing terms of the indenture, for as long as the company is subject to the requirements of the TSX Co. Manual, the total amount of cash interest paid to EdgePoint Investment Group Inc. and Maple Rock Capital Partners Inc. and their respective affiliates and associates in respect of debentures held by them cannot exceed $14.88 million in total, unless the company first obtains the approval of the Toronto Stock Exchange or the approval of the holders of the company's subordinate voting shares.
Maple Rock is no longer the beneficial owner of any debentures and is no longer considered an interested party for the purpose of approving the removal of the insider cash interest limit.
In accordance with the requirements of the TSX Co. Manual, the company has obtained the approval of Maple Rock and OLP Capital Management Ltd., who in the aggregate hold approximately 53% of the issued and outstanding shares, excluding the shares held by EdgePoint, to remove the insider cash interest limit in respect of all interest obligations.
The company issued $90 million of the debentures in a private placement in July of 2020.
Based in Toronto, the company provides cloud service providers with cloud-native revenue management software.
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