By Rebecca Melvin
Princeton, N.J., Sept. 29 - In connection with its purchase of a U.S.-based aluminum company, Canada's Superior Plus Income Fund priced C$75 million of convertible debentures to yield 5.85%.
The extendible convertible unsecured subordinated debentures, which are being offered concurrently with C$160 million offering of subscription receipts, will be convertible into trust units at a price of C$31.25 per trust unit.
The underwriting syndicate is led by Scotia Capital Inc. and RBC Dominion Securities Inc. and also includes CIBC World Markets Inc., National Bank Financial Inc., TD Securities Inc., HSBC Securities (Canada) Inc. and Canaccord Capital Corp.
The maturity date will initially be Nov. 29. But when the acquisition closes the maturity date will automatically extend to Oct. 31, 2015.
In the event that the acquisition is not completed on or before Nov. 29, the debentures will mature on the initial maturity date.
The Canadian propane distributor has agreed, through its wholly owned U.S. subsidiary, Superior Plus Inc., to purchase JW Aluminum Holding Co. for C$412 million ($350 million).
The net proceeds of the offering of about $223.5 million will be used to finance a portion of the purchase price of the proposed acquisition of JW Aluminum.
Superior Plus has entered into a $365 million senior secured, non-revolving acquisition credit facility with a two-year term, underwritten by the Bank of Nova Scotia, which will be used to finance the remainder of the purchase price.
| Issuer: | Superior Plus Income Fund
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| Issue: | Extendible convertible unsecured subordinated debentures
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| Amount: | C$75 million
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| Underwriters: | Scotia Capital Inc., RBC Dominion Securities Inc. (joint leads), CIBC World Markets Inc., National Bank Financial Inc., TD Securities Inc., HSBC Securities (Canada) Inc. and Canaccord Capital Corp.
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| Maturity: | Oct. 31, 2015
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| Coupon: | 5.85%
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| Price: | Par
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| Yield: | 5.85%
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| Conversion price: | C$31.25
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