Clarke underwriters exercise greenshoe, upsize deal, raising convertibles to C$70 million

By Angela McDaniels

Seattle, Nov. 15 - Clarke Inc. said the underwriters of its recent offering of 6% convertible unsecured subordinated debentures due 2012 exercised their C$20 million over-allotment option in full. The size of the offering has also been raised by C$10 million, bringing the deal to C$70 million.

The company originally priced C$40 million of the convertibles on Dec. 7 at par with an initial conversion price of C$23.75 for a conversion premium of 25%.

The deal is being underwritten by a syndicate led by National Bank Financial Inc, and the offering is expected to close on 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, N.S.-based Clarke is an investment holding company with interests in transportation, real estate and information technology services.

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