By Rebecca Melvin
New York, Dec. 1 - Macquarie Power & Infrastructure Income Fund priced C$50 million of seven-year convertible debentures on a bought-deal basis to yield 6.5% with an initial conversion premium of 20%, the company said Tuesday.
There is an over-allotment option for an additional C$7.5 million of debentures.
The Regulation S issue was made via a syndicate of underwriters led by TD Securities Inc. and BMO Capital Markets, and including RBC Capital Markets, Macquarie Capital Markets Canada Ltd., CIBC, Brookfield Financial Corp., HSBC Securities (Canada) Inc., Cormark Securities Inc. and Genuity Capital Markets.
The initial conversion price is C$7 per Macquarie Power unit.
The debentures are non-callable until Dec. 31, 2012 and then provisionally callable until Dec. 31, 2014 if the volume weighted average price of the fund unit is 125% of the conversion price.
The offering will be made in all provinces of Canada and is expected to close on or about Dec. 22, subject to regulatory approval.
The fund also announced that it will be redeeming its 6.75% convertible unsecured subordinated debentures due Dec. 31, 2010, totaling $38.9 million. The date fixed for redemption of the 2010 debentures is Jan. 11, 2010.
Proceeds of the 2016 debentures will be used to redeem the fund's outstanding 2010 debentures and for general purposes of the fund.
Macquarie Power & Infrastructure is a Toronto-based fund that invests in infrastructure assets in North America.
| Issuer: | Macquarie Power & Infrastructure Income Fund
|
| Issue: | Convertible debentures
|
| Amount: | C$50 million
|
| Greenshoe: | C$7.5 million
|
| Maturity: | Dec. 31, 2016
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 20%
|
| Conversion price: | C$7.00 per fund unit
|
| Underwriters: | Syndicate led by TD Securities Inc. and BMO Capital Markets, and including RBC Capital Markets, Macquarie Capital Markets Canada, CIBC, Brookfield Financial Corp., HSBC Securities (Canada) Inc., Cormark Securities Inc. and Genuity Capital Markets
|
| Pricing date: | Dec. 1
|
| Settlement date: | Dec. 22
|
| Stock listing: | Toronto: MTP.UN
|
| Stock reference: | C$5.83
|
| Market capitalization: | C$273 million
|
| Distribution: | Regulation S
|
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