By Rebecca Melvin
New York, July 5 - Aston Hill Financial Inc. priced C$35 million of extendible convertible debentures in a bought deal to yield 6% with an initial conversion premium of 45%.
Proceeds of the convertibles, together with credit facilities for C$10 million, are being used to fund acquisitions that will increase Aston Hill's assets under management to about C$5.8 billion from C$3.4 billion, according to a release.
The bought deal was led by a syndicate of underwriters, including CIBC, RBC Capital Markets and Scotia Capital Inc., and including BMO Capital Markets, Canaccord Genuity Corp., TD Securities Inc., GMP Securities LP, Cormark Securities Inc., FirstEnergy Capital Corp. and Stonecap Securities Inc.
There is an over-allotment option to purchase up to an additional C$5.25 million of convertibles.
The extendible convertibles will have an initial maturity date of Sept. 20, 2011, which will automatically be extended to five years upon completion of the acquisitions.
The bonds are non-callable for three years, until July 31, 2014, and then provisionally callable subject to a 125% price hurdle for one year, until July 31, 2015. After that they are freely callable.
The debentures are being offered in the provinces of Canada, except for Québec.
Calgary, Alta.-based Aston Hill is an investment manager.
| Issuer: | Aston Hill Financial Inc.
|
| Issue: | Extendible convertible debentures
|
| Amount: | C$35 million
|
| Greenshoe: | C$5.25 million
|
| Maturity: | Initially Sept. 30, 2011, extendible to July 31, 2016
|
| Bookrunners: | Syndicate led by CIBC, RBC Capital Markets and Scotia Capital Inc.
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 45%
|
| Conversion price: | C$2.55
|
| Conversion ratio: 392.1569
|
| Calls: | Non-callable for three years, until July 31, 2014, then provisionally callable subject to a 125% price hurdle for one year
|
| Pricing date: | July 5
|
| Settlement date: | July 27
|
| Stock symbol: | TSX AHF
|
| Stock price: | C$1.76 at close July 5
|
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