Clearwater Seafoods begins consent solicitation for 7% convertibles

By Angela McDaniels

Tacoma, Wash., Feb. 17 - Clearwater Seafoods Income Fund is soliciting consents to amend its 7% convertible unsecured subordinated debentures due Dec. 31, 2010, according to a company news release.

The company is seeking to extend the maturity of the convertibles to Dec. 31, 2013. If the consent solicitation is successful, Clearwater Seafoods LP will affect a similar extension of its class C units.

In exchange for consents, the company will increase the interest rate to 9.5% and reduce the conversion price to C$5.90 per fund unit from C$12.25.

In addition, the amended convertibles will not be redeemable prior to Dec. 31, 2010, and holders of the amended convertibles will receive 101% of par at redemption or maturity.

For the proposed amendments to be approved, consents are needed from holders of at least two-thirds of the convertibles.

A meeting of the convertible holders will be held at 9 a.m. ET on March 16. Written consents and proxies must be received by Computershare Investor Services Inc. (800 564-6253) no later than 9 a.m. ET on March 12.

Cormark Securities Inc. is the soliciting dealer manager, and TD Securities Inc. is acting as financial adviser to Clearwater.

Clearwater is a Halifax, N.S.-based supplier of premium seafood.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.