By Stephanie N. Rotondo
Seattle, May 25 – Mogo Finance Technology Inc. brought a best-efforts public offering of up to C$15 million of 10% senior secured convertible debentures due May 31, 2020, the company said in a press release on Thursday.
Mackie Research Capital Corp., Cormark Securities Inc., Canaccord Genuity Inc., Haywood Securities Inc. and M Partners Inc. are acting as the deal’s agents.
There is a C$2.25 million two-day over-allotment option.
Conversions will be settled in cash, stock or both. The conversion rate is 200 shares per each C$1,000 of notes, or C$5.00 a share. That equals an initial conversion premium of 38.5%.
The company can force an early conversion is the stock hits a 115% price hurdle. Additionally, it can redeem the issue after one year at par plus accrued interest, including a make-whole premium. After two years, the redemption price is par plus accrued interest.
The debentures are convertible, at the holder’s option, at any time prior to maturity or upon a change of control.
Proceeds will be used to fund the growth of the company’s loan portfolio.
Mogo Finance is a Vancouver, B.C.-based financial technology company.
| Issuer: | Mogo Finance Technology Inc.
|
| Securities: | Senior secured convertible debentures
|
| Amount: | C$15 million
|
| Greenshoe: | C$2.25 million
|
| Maturity: | May 31, 2020
|
| Bookrunners: | Mackie Research Capital Corp., Cormark Securities Inc., Canaccord Genuity Inc., Haywood Securities Inc. and M Partners Inc.
|
| Coupon: | 10%
|
| Price: | Par of C$1,000
|
| Yield: | 10%
|
| Conversion premium: | 38.5%
|
| Conversion price: | C$5.00
|
| Conversion rate: | 200 shares
|
| Call options: | After one year with a make-whole premium; after two years at par plus accrued interest
|
| Contingent conversion: | Yes, with 115% stock price hurdle
|
| Pricing date: | May 24
|
| Settlement date: | May 31
|
| Stock symbol: | TSX: MOGO
|
| Stock price: | C$3.61 as of May 24 close
|
| Market capitalization: | C$62.4 million
|
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