By Rebecca Melvin
New York, April 27 - The DATA Group Income Fund announced the closing of $45 million of seven-year convertible debentures Wednesday, which priced on a bought-deal basis earlier this month to yield 6% with an initial conversion premium of 30%, according to a news release.
The Regulation S offering was underwritten by a syndicate of underwriters led by TD Securities Inc. and including, BMO Nesbitt Burns Inc., CIBC World Markets Inc., Canaccord Financial Ltd., Industrial Alliance Securities Inc. and National Bank Financial Inc.
There is a C$5 million over-allotment option.
The debentures are non-callable until June 30, 2013, and then provisionally callable until June 30, 2015 at a price hurdle of 125% of the conversion price.
After June 30, 2015, the Fund can redeem the debentures at their principal amount plus accrued and unpaid interest.
Holders can convert the debentures into units of the fund at a conversion price of C$12.20 per unit.
The offering was made in all provinces of Canada.
Proceeds are being used to repay a portion of the Data Group LP's outstanding borrowings under its existing revolving credit facilities.
Based in Brampton, Ont., DATA Group Income Fund holds the interests of DATA Group, a provider of document management solutions, including printed products.
| Issuer: | DATA Group Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$45 million
|
| Greenshoe: | C$5 million
|
| Maturity: | June 30, 2017
|
| Underwriters: | Syndicate led by TD Securities Inc. and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., Canaccord Financial Ltd., Industrial Alliance Securities Inc. and National Bank Financial Inc.
|
| Coupon: | 6%
|
| Price: | Par, C$1,000
|
| Yield: | 6%
|
| Conversion premium: | 30%
|
| Conversion price: | C$12.20 per unit
|
| Call option: | Provisionally from June 30, 2013 to June 30, 2015 at a price hurdle of 125% of the conversion price
|
| Pricing date: | April 6
|
| Settlement date: | April 27
|
| Distribution: | Regulation S
|
| Stock listing: | Toronto: DGI. UN
|
| Stock reference: | C$9.40
|
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