By Abigail W. Adams
Portland, Me., Jan. 18 – Aurora Cannabis Inc. priced an upsized $300 million offering of five-year convertible notes prior to the market open Friday at the cheap end of talk at par with a coupon of 5.5% and an initial conversion premium of 10%, according to a company news release.
Price talk had been for a coupon of 5% to 5.5% and an initial conversion premium of 10% to 15%, according to a market source.
BMO Capital Markets and Cowen and Co. LLC are joint bookrunners for the Rule 144A and Regulation S offering, which carries an upsized greenshoe of $45 million.
The initial size of the deal had been $250 million with a greenshoe of $37.5 million.
The notes are non-callable for three years and then subject to a 130% hurdle with a make-whole. They will be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used to support expansion, for future acquisitions and for general corporate purposes.
Aurora Cannabis is an Edmonton, Alta.-based cannabis company.
| Issuer: | Aurora Cannabis Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | Feb. 28, 2024
|
| Bookrunners: | BMO Capital Markets and Cowen and Co. LLC
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 10%
|
| Conversion price: | $7.23
|
| Conversion rate: | 138.37
|
| Call options: | Non-callable until Feb. 28, 2022 then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Jan. 18
|
| Settlement date: | Jan. 24
|
| Distribution: | Rule 144A and Regulation S
|
| Talk: | Coupon of 5% to 5.5% and an initial conversion premium of 10% to 15%
|
| Stock symbol: | NYSE: ACB, TSX: ACB
|
| Stock price: | $6.57 at market close Jan. 17
|
| Market capitalization: | $6.55 billion
|
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