By Angela McDaniels
Tacoma, Wash., Aug. 17 - TransForce Inc. priced C$85 million of 5.65% convertible subordinated debentures due 2018, according to a company news release.
A syndicate of underwriters led by National Bank Financial Inc. and RBC Dominion Securities Inc. agreed to purchase the convertibles on a bought-deal basis.
There is a C$12.75 million over-allotment option.
The convertibles will be offered at par by way of short-form prospectus in each of the provinces of Canada and in the United States under applicable registration statement exemptions.
The conversion price is C$22.10 per share, which is a 61.9% premium to the company's C$13.65 closing share price on Tuesday.
The convertibles are callable in certain circumstances after Sept. 30, 2014.
The offering is expected to close on Sept. 7. The company will use the proceeds for general corporate purposes, to support its program of strategic acquisitions and to reduce debt.
TransForce is a Montreal-based transportation and logistics company.
| Issuer: | TransForce Inc.
|
| Amount: | C$85 million
|
| Greenshoe: | C$12.75 million
|
| Maturity: | Sept. 30, 2018
|
| Underwriters: | National Bank Financial Inc. and RBC Dominion Securities Inc.
|
| Coupon: | 5.65%
|
| Price: | Par
|
| Conversion price: | C$22.10
|
| Conversion premium: | 61.9%
|
| Conversion ratio: | 45.25
|
| Call option: | After Sept. 30, 2014
|
| Pricing date: | Aug. 17
|
| Settlement date: | Sept. 7
|
| Stock symbol: | Toronto: TFI
|
| Stock price: | C$13.62 at close Aug. 17
|
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