By Rebecca Melvin
New York, New York, Oct. 10 - Entrec Corp. priced C$20 million of five-year convertible debentures on a bought-deal basis at par to yield 7% with an initial conversion premium of 66%, according to a company news release.
The Regulation S offering was bought by a syndicate of underwriters led by National Bank Financial Inc. There is an over-allotment option for up to an additional C$3 million of debentures.
The debentures are convertible at any time for a conversion price of C$2.60 per share. Conversion may be made in cash or shares.
The convertibles are non-callable for three years and then provisionally callable for one year until Oct. 31, 2016 if shares are 125% of the conversion price.
There is takeover protection in the form of a make-whole premium.
Proceeds will be used to fund future acquisitions, to reduce debt and for general corporate purposes.
The bonds are being offered by way of a short form prospectus in all the provinces of Canada except Quebec. Closing is expected to occur Oct. 30.
Entrec is a Spruce Grove, Alta.-based provider of cargo services to the oil and gas industries.
| Issuer: | Entrec Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$20 million
|
| Greenshoe: | C$3 million
|
| Maturity: | Oct. 31, 2017
|
| Bookrunners: | Syndicate led by National Bank Financial Inc.
|
| Coupon: | 7%
|
| Price: | Par, C$1,000
|
| Yield: | 7%
|
| Conversion premium: | 66%
|
| Conversion price: | C$2.60
|
| Conversion rate: | 384.6154
|
| Call: | Non-callable until Oct. 31, 2015, then provisionally callable at 125% hurdle for one year
|
| Pricing date: | Oct. 10
|
| Settlement date: | Oct. 30
|
| Stock reference price: | C$1.57, close as of Oct. 10
|
| Stock symbol: | Toronto: ENT
|
| Distribution: | Reg. S, public offering in Canadian provinces except Quebec
|
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