By Angela McDaniels
Tacoma, Wash., Feb. 2 - WesternOne Equity Income Fund plans to issue C$20 million of 8.5% convertible trust debentures due Dec. 31, 2015 in a bought-deal financing, according to a company news release.
There is a C$3 million over-allotment option.
The debentures will be convertible into trust units at a conversion price of C$5.25.
For one year beginning on Dec. 31, 2013, the convertibles will be callable at par if the volume-weighted average trading price of the units for the 20 consecutive trading days ending five trading days prior to the call date is at least 125% of the conversion price.
Beginning Dec. 31, 2014, the convertibles will be callable at par.
The syndicate of underwriters is co-led by Dundee Securities Corp. and National Bank Financial and includes Canaccord Capital Corp., Raymond James Ltd. and HSBC Securities (Canada) Inc.
The settlement date is expected to be Feb. 26.
The proceeds will be used to fund potential acquisitions and for general corporate purposes.
Vancouver, B.C.-based WesternOne Equity acquires equipment-, fuel distribution- and infrastructure-related businesses.
| Issuer: | WesternOne Equity Income Fund
|
| Issue: | Convertible trust debentures
|
| Amount: | C$20 million
|
| Greenshoe: | C$3 million
|
| Underwriters: | Dundee Securities Corp. and National Bank Financial (co-leads), Canaccord Capital Corp., Raymond James Ltd., HSBC Securities (Canada) Inc.
|
| Maturity: | Dec. 31, 2015
|
| Coupon: | 8.5%
|
| Price: | Par
|
| Yield: | 8.5%
|
| Conversion price: | C$5.25
|
| Conversion ratio: | 190.47619
|
| Call option: | At par subject to 125% hurdle in year five; at par any time in year six
|
| Pricing date: | Feb. 2
|
| Settlement date: | Feb. 26
|
| Unit symbol: | Toronto: WEQ.UN
|
| Unit price: | C$4.50 at close Feb. 1
|
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