Ag Growth greenshoe ups 4.5% convertibles to C$86.25 million

By Susanna Moon

Chicago, Jan. 9 – Ag Growth International Inc. said underwriters fully exercised the C$11.25 million over-allotment option on its 4.5% five-year convertible subordinated debentures.

The greenshoe exercise brings the total deal size to C$86.25 million, according to a company press release.

As reported, Ag Growth priced C$75 million of the five-year convertibles at par on Dec. 6 to yield 4.5% with an initial conversion premium of 65%.

CIBC Capital Markets, National Bank Financial Inc. and TD Securities Inc. are the joint bookrunners for the deal.

The conversion price is C$88.15 with a conversion rate of 11.3443.

The debentures are non-callable for three years and then are provisionally callable for one year at a 125% hurdle.

After Dec. 31, 2021, the company has the option to redeem the debentures in whole or in part.

Proceeds will be used to redeem Ag Growth’s outstanding 5.25% convertible debentures due Dec. 31, 2018, with the redemption set for Jan. 9.

Based in Winnipeg, Man., Ag Growth is a maker of portable and stationary grain handling, storage and conditioning equipment, including augers and belt conveyors.

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