By Rebecca Melvin
New York, July 2 - Superior Plus Corp. priced C$80 million of six-year convertible subordinated debentures on a bought-deal basis at par to yield 6% with an initial conversion premium of 35%, according to a company news release.
There is an over-allotment option for an additional C$12 million of debentures.
The issue was made via a syndicate of underwriters co-led by Scotiabank and TD Securities Inc., and including BMO Capital Markets, CIBC, National Bank Financial Inc. and Cormark Securities Inc.
Proceeds will be used initially to repay debt under the company's credit facility, which will then be available to be drawn as required to fund the redemption of its 7.5% convertible debentures that are callable on Aug. 31, and for working capital and/or general corporate purposes.
The initial conversion price of the new convertibles is C$16.75 per common share.
The debentures are non-callable until July 31, 2016 and then provisionally callable for two years subject to a 125% price hurdle. After that, they are freely callable.
Superior is a Calgary, Alta.-based marketer of propane, propane-burning appliances and related support services.
| Issuer: | Superior Plus Corp.
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$80 million
|
| Greenshoe: | C$12 million
|
| Maturity: | June 30, 2019
|
| Underwriters: | Scotiabank and TD Securities Inc., and including BMO Capital Markets, CIBC, National Bank Financial Inc. and Cormark Securities Inc.
|
| Coupon: | 6%
|
| Price: | Par, C$1,000
|
| Yield: | 6%
|
| Conversion premium: | 35%
|
| Conversion price: | C$16.75
|
| Conversion ratio: | 59.7015
|
| Call option: | Non-callable until July 31, 2016, then provisionally callable for two years subject to 125% price hurdle
|
| Pricing date: | July 2
|
| Settlement date: | July 22
|
| Stock listing: | Toronto: SPB
|
| Stock price: | C$12.41
|
| Market capitalization: | C$1.57 billion
|
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