New York, Sept. 15 - Brascan Corp. priced C$255 million debentures exchangeable for common shares of Norbord Inc.
The sale was part of a monetization by Brascan of part of its interest in Norbord. Brascan also sold 10 million Norbord common shares at C$12.75 per share.
TD Securities Inc. and RBC Capital Markets were lead managers of the sale, which was offered in a private placement in Canada and to qualified institutional buyers in the United States.
The debentures are exchangeable at either the issuer's or the investor's option. During the first five years the initiating party will pay an early termination premium. Also, if the issuer exchanges the debentures in the first five years it will pay an addition premium if Norbord's stock is trading below C$12.75.
Brascan is a Toronto-based asset management company.
| Issuer: | Brascan Corp.
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| Issue: | Exchangeable debentures
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| Underlying stock: | Norbord Inc.
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| Amount: | C$255 million
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| Exchange price: | C$12.75
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| Exchange ratio: | 78.4314 (in cash or stock)
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| Lead managers: | TD Securities Inc., RBC Capital Markets
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| Pricing date: | Sept. 15
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