By Sheri Kasprzak
New York, Nov. 15 - Associated Brands Income Fund said it has concluded its previously announced private placement for C$11.75 million.
The company issued to Torquest Partners Value Fund, LP and Torquest Partners Value Fund (Parallel Partnership No. 1) LP C$10 million of the debentures, and trustees of Associated Brands Operating Trust bought the remainder.
The 9% debentures mature Sept. 30, 2008 and are exchangeable for fund units at C$4.00 each.
Torquest has the option to buy another C$15 million in debentures within the next 90 days.
The deal was first announced Oct. 14 as a C$10 million offering.
Of the proceeds, C$3.6 million will be used for four capital projects the company hopes will improve operational efficiency, enhancing manufacturing capacity and flexibility. The rest will be used for financial restructuring.
Toronto-based Associated Brands makes and supplies dry-blend food products and household products.
Issuer: | Associated Brands Income Fund
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Issue: | Exchangeable debentures
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Amount: | C$11.75 million
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Maturity: | Sept. 30, 2008
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Coupon: | 9%
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Price: | Par
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Yield: | 9%
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Conversion price: | $4.00
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Warrants: | No
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Investors: | Torquest Partners Value Fund, LP; Torquest Partners Value Fund (Parallel Partnership No. 1 LP; trustees of Associated Brands Operating Trust
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Settlement date: | Nov. 15
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Stock price: | C$4.12 at close Nov. 14
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