By Rebecca Melvin
New York, March 7 - Morneau Shepell Inc. priced C$70 million of five-year convertible debentures on a bought-deal basis at par to yield 5.75% with an initial conversion premium of 43%, according to a news release.
The Regulation S offering was brought by a syndicate of underwriters co-led by National Bank Financial Inc. and TD Securities Inc. and has an over-allotment option for up to C$5 million of additional notes.
The debentures are non-callable until March 31, 2015.
Proceeds will be used for general corporate purposes and to support strategic acquisitions.
Morneau Shepell is the largest benefits and pension consulting firm in Canada.
| Issuer: | Morneau Shepell Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$70 million
|
| Greenshoe: | C$5 million
|
| Maturity: | March 17, 2017
|
| Bookrunners: | Syndicate co-led by National Bank Financial Inc. and TD Securities Inc.
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Yield: | 5.75%
|
| Conversion premium: | 43%
|
| Conversion price: | C$15.00
|
| Conversion ratio: | 66.667
|
| Calls: | Non-callable until March 31, 2015
|
| Announcement date: | March 7
|
| Settlement date: | March 27
|
| Distribution: | Short form prospectus in Canada; Regulation S
|
| Stock symbol: | Toronto: MSI
|
| Stock price: | C$10.62 at close March 7
|
| Market capitalization: | C$509.13 million
|
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