By Stephanie N. Rotondo
Seattle, Nov. 4 – Mosaic Capital Corp. sold C$15 million of 7% convertible unsecured senior subordinated debentures due Dec. 31, 2021 at par with conversion premium of 29%, the company said in a press release on Friday.
The deal was led by Canaccord Genuity Corp.
The conversion price is C$9.00 per share.
Interest will be payable semiannually.
The company has the option to redeem the issue beginning Dec. 31, 2019 at par plus accrued interest, provided that the volume weighted average price of the common stock for 20 consecutive days following the redemption notice is 125% of the conversion price. The company can also opt to redeem the issue beginning Dec. 31, 2020 with no qualifications.
The Calgary, Alta.-based investment company will use the proceeds to pay down existing credit facilities, for future acquisitions and for general corporate purposes, including working capital.
| Issuer: | Mosaic Capital Corp.
|
| Securities: | Convertible unsecured senior subordinated debentures
|
| Amount: | C$15 million
|
| Greenshoe: | C$2.25 million
|
| Maturity: | Dec. 31, 2021
|
| Bookrunner: | Canaccord Genuity Corp.
|
| Coupon: | 7%
|
| Price: | Par of C$1,000
|
| Yield: | 7%
|
| Conversion premium: | 29%
|
| Conversion price: | C$9.00 per share
|
| Contingent redemption: | At par plus accrued interest beginning Dec. 31, 2019 if VWAP of stock is 125% of conversion price for 20 consecutive trading days; redeemable at par beginning Dec. 31, 2020 with no prerequisites
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 10
|
| Stock symbol: | TSX-V: M
|
| Market capitalization: | C$53.5 million
|
© 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.
