By Kenneth Lim
Boston, May 25 - Canada's Eveready Income Fund priced on Thursday C$50 million of five-year convertible subordinated unsecured debentures at a coupon of 7% and an initial conversion premium of 10.39% over its Thursday closing stock price.
The debentures were offered at par and have an initial conversion price of C$8.50 per trust unit. Eveready units closed at C$7.70 on Thursday before the offering was announced.
Blackmont Capital Inc. was the lead underwriter for the deal.
Eveready manages businesses that provide industrial and oilfield services to the energy, resource and manufacturing sectors in Canada and the United States. It will use the deal proceeds to reduce its outstanding senior debt.
| Issuer: | Eveready Income Fund
|
| Issue: | Convertible subordinated unsecured debentures
|
| Lead underwriter: | Blackmont Capital Inc.
|
| Amount: | C$50 million
|
| Maturity: | June 30, 2011
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion premium: | 10.39%
|
| Conversion price: | C$8.50
|
| Conversion ratio: | 117.6471
|
| Pricing date: | May 25
|
| Settlement date: | June 15
|
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