Element Fleet greenshoe lifts 4.25% convertibles to C$172.5 million

Chicago, April 8 – Underwriters for Element Fleet Management Corp.’s 4.25% convertible unsecured subordinated debentures have fully exercised their C$22.5 million greenshoe, lifting the total deal size to C$172.5 million, according to a company news release.

The closing of the over-allotment option is expected on Wednesday.

The company priced C$150 million of the convertibles on March 27 with an initial conversion premium of 40%, as previously reported.

The debentures are non-callable until June 30, 2022, callable subject to a 125% hurdle until June 30, 2023 and then freely callable.

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.

J.P. Morgan Securities Canada Inc., Merrill Lynch Canada Inc., Mizuho Securities USA LLC, Desjardins Securities Inc., Raymond James Ltd. and Scotia Capital Inc. acted as co-managers.

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.

© 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.