By Rebecca Melvin
New York, Sept. 24 - Mood Media Corp. sold C$31.5 million of five-year convertible unsecured subordinated debentures in a bought deal to yield 10%, with an initial conversion premium of 56%, according to a release.
The public offering was sold via a syndicate of underwriters led by BMO Capital Markets and including Octagon Capital Corp. and Desjardins Securities Inc.
There is an option to purchase up to an additional C$1.58 million of debentures.
The debentures are convertible at an initial conversion price of US$2.43 per common share, which is equal to C$2.50 per common share.
The debentures are non-callable for three years until Oct. 31, 2013, and then provisionally callable at par if the U.S. dollar equivalent of the Toronto Stock Exchange VWAP is at least 130% of the conversion price.
In connection with the offering, Mood Media chairman and chief executive Lorne Abony has agreed to subscribe for US$3 million aggregate principal amount of debentures.
Proceeds of the offering are being used to redeem the company's outstanding C$30.32 million of 10% convertibles.
The offering is being sold in Canada via a short form prospectus and in the United Sates under Rule 144A.
Mood Media, formerly Fluid Music Canada Inc., is a Toronto, Ont.-based private label music aggregation and distribution company.
| Issuer: | Mood Media Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$31.5 million
|
| Maturity: | Oct. 31, 2015
|
| Greenshoe: | C$1.58 million
|
| Underwriters: | Syndicate led by BMO Capital Markets
|
| Coupon: | 10%
|
| Price: | Par, C$1,000
|
| Yield: | 10%
|
| Conversion premium: | 56%
|
| Conversion price: | US$2.43 or C$2.50
|
| Call: | From Oct. 31, 2013 at par subject to 130% hurdle
|
| Pricing date: | Sept. 24
|
| Settlement: | Oct. 1
|
| Stock listing: | Toronto: MM
|
| Stock reference: | C$1.60
|
| Distribution: | Reg. 144A and short form prospectus
|
| Market capitalization: | C$168.64 million
|
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