By Abigail W. Adams
Portland, Me., March 27 – Element Fleet Management Corp. priced C$150 million of five-year convertible debentures after the market close on Wednesday at par with a coupon of 4.25% and an initial conversion premium of 40%, according to a company news release.
BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets and TD Securities Inc. led the syndicate of underwriters on the bought deal, which carries a greenshoe of C$22.5 million.
The notes are being offered via short-form prospectus in all provinces of Canada and may be offered via private placement in the United States.
The debentures are non-callable until June 30, 2022, callable subject to a 125% hurdle until June 30, 2023 and then freely callable.
Proceeds, combined with other funds, will be used to repay the C$345 million outstanding of the 5.125% convertible unsecured subordinated debentures at their maturity on June 30, 2019.
Element Fleet Management is a Toronto-based commercial vehicle fleet services and financing company.
| Issuer: | Element Fleet Management Corp.
|
| Securities: | Convertible unsecured subordinated debentures
|
| Amount: | C$150 million
|
| Greenshoe: | C$22.5 million
|
| Maturity: | June 30, 2024
|
| Bookrunners: | BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets, and TD Securities Inc.
|
| Coupon: | 4.25%
|
| Price: | Par
|
| Yield: | 4.25%
|
| Conversion premium: | 40%
|
| Conversion price: | C$12.05
|
| Call options: | Non-callable until June 30, 2022, callable subject to a 125% hurdle until June 30, 2023 and then freely callable
|
| Pricing date: | March 27
|
| Distribution: | Short form prospectus
|
| Stock symbol: | Toronto: EFN
|
| Stock price: | C$8.61 at market close March 27
|
| Market capitalization: | C$3.27 billion
|
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