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Dirtt launches capped tender offer for two series of convertibles
By Mary-Katherine Stinson
Lexington, Ky., Feb. 15 – Dirtt Environmental Solutions Ltd. launched a cash tender offer for two series of convertibles due 2026, according to a press release and an 8-K filing with the Securities and Exchange Commission.
Dirtt will purchase up to C$6 million of its convertible subordinated debentures due Jan. 31, 2026 at a purchase price of C$720 per C$1,000 principal amount and up to C$9 million total principal of its 6.25% convertible subordinated debentures due Dec. 31, 2026 at a purchase price of C$600 per C$1,000 principal amount. The considerations are subject to applicable withholding taxes, if any.
Accrued interest will also be paid.
The tender offer will remain open for acceptance until 5 p.m. ET on March 22. The tender offer is subject to other customary conditions, as detailed in the issuer bid documents.
Tenders will be prorated if the caps are exceeded.
Repurchased notes will be canceled.
The company intends to fund the offer with a portion of the proceeds from its previously completed rights offering to its common shareholders, which closed in January for total gross proceeds of C$30 million.
On Feb. 12, the closing price of the January debentures on the Toronto Exchange was C$62 per C$100 principal amount, which represents C$620 per C$1,000 principal amount. On Feb. 8, the closing price of the December debentures C$55 per C$100 principal amount, which represents C$550 per C$1,000 principal amount. The debentures trade under the symbols “DRT.DB” and “DRT.DB.A,” respectively.
As of Feb. 14, C$40.25 million principal amount of January debentures and C$35 million principal amount of December debentures were outstanding.
Dirtt is a Calgary, Alta.-based customized interior building company.
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