A Sept. 27 story in the Prospect News Convertibles Daily incorrectly described the currency in which Mood Media Corp.'s new convertibles were denominated. The convertibles are denominated in U.S. dollars. A corrected version of the story follows.
By Rebecca Melvin
New York, Sept. 24 - Mood Media Corp. sold $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 news 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 $1.58 million of debentures.
The debentures are convertible at an initial conversion price of $2.43 per common share, which is equal to C$2.50 per common share.
The debentures are non-callable until Oct. 31, 2013 and then provisionally callable at the principal amount plus interest 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 $3 million principal amount of the 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: | $31.5 million
|
| Maturity: | Oct. 31, 2015
|
| Greenshoe: | $1.58 million
|
| Underwriters: | Syndicate led by BMO Capital Markets and including Octagon Capital Corp. and Desjardins Securities Inc.
|
| Coupon: | 10%
|
| Price: | Par, $1,000
|
| Yield: | 10%
|
| Conversion premium: | 56%
|
| Conversion price: | $2.43 or C$2.50
|
| Pricing date: | Sept. 24
|
| Settlement date: | Oct. 1
|
| Stock listing: | Toronto: MM
|
| Stock reference: | C$1.60
|
| Distribution: | Rule 144A and short form prospectus
|
| Market capitalization: | C$168.64 million
|
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