By Laura Lutz
Des Moines, Dec. 19 - MagIndustries Corp. completed its private placement of debt units for $37.85 million, down from the $40 million maximum size announced on Nov. 16, according to a news release.
Each unit included $1,000 principal amount of senior unsecured notes and warrants for 175 common shares.
The notes will mature five years and one day after closing and bear interest at 11% per year. Interest will be payable semiannually.
Each warrant will be exercisable at C$2.40 for five years.
Cormark Securities Inc. and Jennings Capital Inc. lead a syndicate of underwriters that included Desjardins Securities Inc., Paradigm Capital Inc. and Ambrian Securities plc.
Proceeds will be used to complete the company's wood chip mill, to modernize its equipment, to refurbish its hydroelectric project and for general corporate purposes.
Toronto-based MagIndustries owns resource subsidiaries that operate industrial projects in the Democratic Republic of Congo.
| Issuer: | MagIndustries Corp.
|
| Issue: | Units of $1,000 principal amount of senior unsecured notes and 175 warrants
|
| Amount: | $37,845,000
|
| Units: | 37,845
|
| Maturity: | Five years
|
| Coupon: | 11%
|
| Price: | $1,000 per unit
|
| Yield: | 11%
|
| Warrants: | 175 per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$2.40
|
| Underwriters: | Cormark Securities Inc. (lead), Jennings Capital Inc. (lead), Desjardins Securities Inc., Paradigm Capital Inc., Ambrian Securities plc.
|
| Pricing date: | Nov. 16
|
| Settlement date: | Dec. 19
|
| Stock symbol: | TSX Venture: MAA
|
| Stock price: | C$1.71 at close Dec. 19
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
