By Sheri Kasprzak
Atlanta, May 4 - Magellan Aerospace Corp. said it plans to raise C$20 million in a private placement.
The company intends to sell 2 million cumulative redeemable preferred shares at C$10.00 each.
The preferreds pay dividends at 8% annually and are convertible into 3.33 common shares for each preferred at C$3.00 each. If all of the preferreds are converted, the company will issue 6,666,666 common shares.
The offering is being conducted as part of the reorganization of its bank facilities.
The company's chairman, Murray Edwards, has agreed to buy at least C$10 million of the offering, which is expected to close May 13.
Based in Toronto, Magellan manufactures aeroengine and aerostructure components for the aerospace industry. It plans to use the proceeds to reduce debt and for general corporate purposes.
| Issuer: | Magellan Aerospace Corp.
|
| Issue: | Cumulative redeemable preferred stock
|
| Amount: | C$20 million
|
| Shares: | 2 million
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| Price: | C$10.00
|
| Dividends: | 8%
|
| Conversion price: | C$3.00
|
| Conversion ratio: | Into 3.33 common shares for each preferred
|
| Warrants: | No
|
| Pricing date: | May 4
|
| Settlement date: | May 13
|
| Stock price: | C$2.65 at close May 4
|
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