By Rebecca Melvin
New York, July 7 – Grenville Strategic Royalty Corp. has priced C$15 million of 5.5-year convertible unsecured subordinated debentures on bought-deal basis to yield 8% with an initial conversion premium of 33%, according to a news release.
The debentures were bought by a syndicate of underwriters led by National Bank Financial Inc. and are being distributed under a short form prospectus.
There is a greenshoe for up to C$2.25 million additional debentures.
The debentures will be convertible at C$0.92 per common share. They are non-callable until Dec. 31, 2017 and freely callable thereafter.
Proceeds are intended to be used for the future purchase of revenue royalties in the company’s target markets.
Closing is expected to occur July 10.
Toronto-based Grenville Strategic Royalty purchases royalties in the revenue stream generated by growing industrial and technology businesses.
| Issuer: | Grenville Strategic Royalty Corp.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$15 million
|
| Greenshoe: | C$2.25 million
|
| Maturity: | 5.5 years
|
| Bookrunners: | Syndicate led by National Bank Financial Inc.
|
| Coupon: | 8%
|
| Price: | Par, C$1,000
|
| Yield: | 8%
|
| Initial conversion premium: | 33%
|
| Initial conversion price: | C$0.92
|
| Initial conversion ratio: | 1,086.9565
|
| Call: | Beginning Dec. 31, 2017
|
| Pricing date: | July 7
|
| Settlement date: | June 10
|
| Stock symbol: | Toronto: GRC
|
| Stock price: | C$0.69 at close July 4
|
| Market capitalization: | C$40.90 million
|
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