By Rebecca Melvin
New York, Sept. 30 - Canam Group Inc. priced an upsized C$60 million of five-year convertible unsecured subordinated debentures with a par value of C$1,000 in a bought deal to yield 6.25% with a 59% initial conversion premium, according to a news release.
The deal was originally announced at C$50 million but subsequently increased to C$60 million.
There is a C$9 million greenshoe, up from C$7.5 million originally.
The debentures are being sold via a syndicate of underwriters led by BMO Capital Markets and National Bank Financial Inc.
At the holder's option, the debentures may be converted into common shares at a conversion price of C$12.00 per common share.
Proceeds will be used to repay debt of the company and for general corporate purposes.
The Regulation S debentures are non-callable for three years, until Oct. 31, 2013, and then provisionally callable subject to a price hurdle of 125% until maturity.
A preliminary short-form prospectus will be filed with securities regulatory authorities in Canada.
Canam is a Boucherville, Quebec-based steel distributor.
| Issuer: | Canam Group Inc.
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$60 million
|
| Greenshoe: | C$9 million
|
| Maturity: | Oct. 31, 2015
|
| Underwriters: | Syndicate led by BMO Capital Markets and National Bank Financial Inc.
|
| Coupon: | 6.25%
|
| Price: | Par, C$1,000
|
| Yield: | 6.25%
|
| Call: | Non-callable until Oct. 31, 2013, then provisionally callable subject to a price hurdle of 125% until maturity
|
| Conversion premium: | 59%
|
| Conversion price: | C$12.00 per common share
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 21
|
| Stock listing: | Toronto: CAM
|
| Stock reference: | C$7.57
|
| Distribution: | Regulation S and short-form prospectus
|
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