By Rebecca Melvin
New York, Sept. 12 - Centric Health Corp. priced C$25 million of five-year convertible debentures on a bought-deal basis to yield 6.75% with an initial conversion premium of 41.7%, according to a news release.
The public offering of debentures, which were bought by a syndicate of underwriters led by National Bank Financial Inc., includes an over-allotment option for up to an additional C$3.75 million of debentures.
Proceeds will be used for future acquisitions, including the previously announced agreement to acquire certain assets of Shouldice Hospital Ltd., and for general corporate purposes.
Holders can convert the debentures at C$1.12 per share.
The debentures are non-callable until Oct. 31, 2015 and then provisionally callable for one year at a price hurdle of 125%. After Oct. 31, 2016, the debentures are freely redeemable at par.
The company can redeem the bonds for cash or shares.
In the event of a change of control, holders may be entitled to receive additional shares as a make-whole premium.
The offering is expected to close on Sept. 21 and is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange.
The debentures will be offered in each of the provinces of Canada except Quebec by way of a prospectus supplement.
Centric Health is a Toronto-based health care investment company.
| Issuer: | Centric Health Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$25 million
|
| Greenshoe: | C$3.75 million
|
| Maturity: | Oct. 31, 2017
|
| Bookrunners: | Syndicate led by National Bank Financial Inc.
|
| Coupon: | 6.75%
|
| Price: | Par, C$1,000
|
| Yield: | 6.75%
|
| Premium: | 41.7%
|
| Conversion price: | C$1.12
|
| Conversion rate: | 892.8571
|
| Call: | Non-callable until Oct. 31, 2015, then provisionally callable for a year a 125%, then freely callable
|
| Takeover protection: | Yes
|
| Pricing date: | Sept. 12
|
| Settlement date: | Sept. 21
|
| Distribution: | Public offering in all Canadian provinces except Quebec
|
| Stock symbol: | Toronto: CHH
|
| Stock price: | C$0.79 at close Sept. 12
|
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