Rocky Mountain extends offer for convertibles, picks new meeting date

By Angela McDaniels

Tacoma, Wash., April 10 - Rocky Mountain Dealerships Inc. said the adjourned meeting of holders of its C$31.5 million of 7% convertible subordinated debentures due Sept. 30, 2017 originally held on March 23 will be held on April 23.

The tender offer for the convertibles has been extended to April 27 from March 30, according to a company news release.

The purchase price was increased to C$1,200 from C$1,125 per C$1,000 principal amount.

The meeting was adjourned to give holders time to consider the price increase and to allow the company to prepare a supplemental management information circular describing the new terms of the offer and the related redemption.

At the meeting, holders will be asked to consider and approve amendments to the trust indenture governing the convertibles that will allow Rocky to redeem any convertibles not tendered in the offer at a redemption price equal to the offer price.

The company will also pay accrued interest up to and including the purchase date.

The tender offer is conditioned on holders approving the redemption or at least 50% of the convertibles being tendered.

Funding for the tender offer will come from working capital and borrowings on a planned amended credit facility.

Members of management owning C$672,000 of the convertibles intend to vote in favor of the indenture amendment, Rocky Mountain said.

RBC Capital Markets is the dealer manager. Kingsdale Shareholder Services Inc. (866 581-1489, 416 867-2272 or contactus@kingsdaleshareholder.com) is the solicitation and information agent.

Rocky Mountain is a Calgary, Alta.-based agriculture and construction equipment dealership.

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