Mint to offer to acquire series B debentures following discussions

By Caroline Salls

Pittsburgh, June 8 – The Mint Corp. plans to make an offer to the holders of its series B debentures to acquire those debentures for cancellation, according to a news release.

As previously reported, Mint announced the terms of a proposed restructuring of the series B debentures, as well as a non-binding term sheet reached for the restructuring of its series A and series C debentures, on April 28.

However, the company said subsequent discussions with several portfolio managers who own series B debentures for their clients revealed that some liquidity and cash are important factors to consider for holders of the series B debentures.

As a result, Mint said it intends to make an offer for the series B debentures under which holders will receive, at the holder’s option, either $150 in cash plus 2,500 common shares of the company under a default option or 4,500 common shares for every $1,000 principal amount of series B debentures and interest.

The common shares issued to holders of the series B debentures will be subject to a hold period expiring four months and a day after the issuance of the common shares.

Mint said its obligation to take up and pay for the series B debentures will be conditional upon at least 66-2/3% in principal amount of the series B debentures being deposited before the offer expires.

By accepting the offer under either option, a series B debentureholder will also be voting in favor of an amendment to the trust indenture giving Mint the right to redeem, in accordance with the default option, the series B debentures that are not purchased for cancellation under the offer, the release said.

In comparison, under the term sheet entered on April 28, holders of series B debentures would have received 750 common shares plus $340 principal amount of new secured series B debentures for every $1,000 of principal and interest.

Mint provides prepaid financial products and services and is based in Toronto.

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