By Angela McDaniels
Seattle, Oct. 22 - Newalta Income Fund is selling a C$100 million offering of 7% convertible unsecured subordinated debentures due Nov. 30, 2012, according to a company news release.
The bought deal financing will be underwritten by a syndicate led by CIBC World Markets Inc. as bookrunner and co-led by RBC Capital Markets.
Each debenture will be convertible into 43.4783 trust units, which is equal to a conversion price of C$23 per trust unit.
The debentures will be callable at par plus accrued interest from Dec. 1, 2010 through Nov. 30, 2011 if the then-current trust unit price is at least 125% of the conversion price. They will be callable at par plus accrued interest at any time beginning Dec. 1, 2011.
The trust said it will, in certain circumstances, have the right to repay the debentures with trust units.
Proceeds will be used to pay down outstanding debt borrowed to fund acquisitions and growth capital expenditures in 2007.
Newalta Income Fund is based in Calgary, Alta., and provides industrial waste management and environmental services.
| Issuer: | Newalta Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$100 million
|
| Maturity: | Nov. 30, 2012
|
| Coupon: | 7%
|
| Conversion price: | C$23
|
| Conversion ratio: | 43.4783
|
| Call: | From Dec. 1 2010 through Nov. 30, 2011 if trust unit price is at least 125% of conversion price; at any time beginning Dec. 1, 2011
|
| Bookrunners: | CIBC World Markets Inc., RBC Capital Markets
|
| Settlement date: | Nov. 16
|
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