By Rebecca Melvin
New York, March 25 - Canada's Medical Facilities Corp. has agreed to sell C$43 million of five-year convertible unsecured subordinated debentures at par to yield 7.5%, according to a company news release.
The bought deal, via a syndicate of underwriters led by National Bank Financial Inc., has an initial conversion premium of 18%.
The debentures are hard-call protected for three years and provisionally callable subject to a 125% hurdle thereafter. Holders can convert the paper after three years.
Proceeds from the sale will be used for repayment of funds borrowed on its acquisition line to complete the acquisitions of the Barranca Surgery Center and Surgery Center of Newport Coast medical facilities.
The deal is expected to close on April 15.
Based in Toronto, Ont., Medical Properties owns a 51% interest in each of three specialty hospitals.
| Issuer: | Medical Facilities Corp.
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$43 million
|
| Maturity: | April 15, 2013
|
| Bookrunners: | Bought deal via syndicate led by National Bank Financial Inc.
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion premium: | 18%
|
| Conversion price: | C$13.10
|
| Conversion ratio: | 76.3359
|
| Call: | Non-callable for three years
|
| Puts: | In year three
|
| Settlement date: | April 15
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
