By Rebecca Melvin
New York, Sept. 4 - Extendicare Inc. has priced C$100 million of seven-year convertible unsecured subordinated debentures on a bought-deal basis at par to yield 6% with an initial conversion premium of 39%, according to a company news release.
The company agreed to sell the securities via a syndicate of underwriters led by RBC Capital Markets, and there is also an option to purchase up to an additional C$15 million of debentures.
Proceeds will be used to redeem the company's outstanding 7.25% convertibles due June 30, 2013, with a principal amount outstanding of $91.79 million, and which are trading on the Toronto stock exchange under the trading symbol EXE.DB.A.
Remaining proceeds will be used for general corporate purposes.
The offering, which is being distributed under a short form prospectus in each of the provinces of Canada, is still subject to normal regulatory approvals. Closing is expected to take place by Sept. 25.
Markham, Ont.-based Extendicare is a provider of long-term care and related services.
| Issuer: | Extendicare Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$100 million
|
| Greenshoe: | C$15 million
|
| Maturity: | Sept. 30, 2019
|
| Bookrunners: | Syndicate led by RBC Capital Markets
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 39%
|
| Conversion price: | C$11.25
|
| Pricing date: | Sept. 4
|
| Closing: | Sept. 25
|
| Stock symbol: | Toronto: EXE
|
| Distribution: | Short form prospectus in Canada
|
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