Morneau Shepell greenshoe raises 4.75% convertibles to C$86 million

New York, June 7 – Morneau Shepell Inc. said that the underwriters exercised in full the C$11 million over-allotment option for its recent sale of five-year convertible debentures.

Settlement of the additional bonds is scheduled for June 8, according to a news release.

The company priced C$75 million of convertibles on May 12 with a 4.75% coupon at par. The initial conversion premium was set at 40%.

With the greenshoe exercise, the issue now totals C$86 million.

National Bank Financial Inc. and TD Securities Inc. were lead managers for the transaction.

Proceeds will initially be used to repay debt under the company’s credit facility, which will then be available to be drawn as required to fund the redemption of the older debentures and for general corporate purposes, including future acquisitions. The redemption of the older bonds is not conditional upon the completion of the new bond offering.

Morneau Shepell is Toronto-based benefits and pension consulting firm.

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