By Rebecca Melvin
Princeton, N.J., Dec. 7 - Canada's Clarke Inc. said it has entered into a bought deal agreement to issue C$40 million of seven-year convertibles at par to yield 6% with an initial conversion premium of 25%, according to a company release.
Clarke has granted the underwriters an option to purchase up to C$20 million additional debentures.
The deal is being underwritten by a syndicate led by National Bank Financial Inc. The unsecured subordinated debentures will mature on Dec. 31, 2012.
The offering is subject to normal regulatory approval and is expected to close on or about Dec. 22.
Clarke intends to use proceeds to make controlling or minority investments in businesses or securities where it sees the opportunity for value creation and growth in investment. A portion of the net proceeds will also be used for working capital and general corporate purposes.
Halifax, Nova Scotia-based Clarke is an investment holding company with interests in transportation, real estate and information technology services.
| Issuer: | Clarke Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Bookrunner: | Syndicate led by National Bank Financial Inc.
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| Amount: | C$40 million
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| Greenshoe: | C$20 million
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| Maturity: | Dec. 31, 2012
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| Coupon: | 6%
|
| Price: | Par
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| Yield: | 6%
|
| Conversion premium: | 25%
|
| Conversion price: | C$23.75
|
| Conversion ratio: | 42.1053
|
| Pricing date: | Dec. 7
|
| Settlement date: | Dec. 22
|
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