By Rebecca Melvin
New York, March 4 - Chemtrade Logistics Income Fund priced C$80 million of seven-year convertible debentures on a bought-deal basis at par to yield 6% with an initial conversion premium of 31%, according to a news release.
There is an over-allotment option for an additional C$12 million of debentures.
The issue was made via a syndicate of underwriters led by Scotia Capital Inc. and BMO Capital Markets, and including TD Securities Inc.
Proceeds will be used to repay existing debt under its credit facility and for general trust purposes.
The initial conversion price is C$16.00 per trust unit.
The debentures are non-callable until March 31, 2013 and then provisionally callable for two years until April 1, 2015 if the volume weighted average price of shares on the Toronto Stock Exchange is 125% of the conversion price.
A preliminary short-form prospectus will be filed with securities regulatory authorities in all provinces of Canada, other than Quebec.
Chemtrade is a Toronto-based trust that owns Chemtrade Logistics Inc., which provides industrial chemicals and related services.
| Issuer: | Chemtrade Logistics Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$80 million
|
| Greenshoe: | C$12 million
|
| Maturity: | March 31, 2017
|
| Underwriters: | Syndicate led by Scotia Capital Inc. and BMO Capital Markets and including TD Securities Inc.
|
| Coupon: | 6%
|
| Price: | Par, C$1,000
|
| Yield: | 6%
|
| Call: | Non-callable until March 31, 2013, then provisionally callable for two years if VWAP of stock is 125% of conversion price
|
| Conversion premium: | 31%
|
| Conversion price: | C$16.00 per trust unit
|
| Pricing date: | March 4
|
| Settlement date: | March 24
|
| Stock listing: | Toronto: CHE.UN
|
| Stock reference: | C$12.25
|
| Distribution: | Regulation S, short-form prospectus in all Canadian provinces except Quebec
|
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