By Rebecca Melvin
New York, Sept. 1 - Canadian power generating company Boralex Inc. priced C$95 million of extendible convertible debentures with a $100 par on a bought-deal basis to yield 6.75% with an initial conversion premium of 61%, according to a prospectus.
There is an over-allotment option for a further C$14.25 million of debentures.
The offering is being made via a syndicate of underwriters led by TD Securities Inc., and including CIBC World Markets Inc., National Bank Financial Inc., RBC Dominion Securities Inc., Scotia Capital Inc., Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities LP, Macquarie Capital Markets Canada Ltd., and Cormark Securities Inc.
The initial conversion price is C$12.50 per common share.
The extendible convertible unsecured subordinated debentures will have an initial maturity date of Dec. 31, 2010. The maturity date will be extended to June 30, 2017, if the take-up of units, which together with the Class B LP Units owned by Boralex and its joint actors represent at least 66 2/3% of the outstanding units by Boralex, or by 7503679 Canada Inc.
The debentures will be hard-call protected for three years until Sept. 30, 2013. After Sept. 30, 2013 and prior to Sept. 30, 2015, the debentures maybe redeemed at a 125% price hurdle.
Proceeds will be used to fund payment of all the trust units of Boralex Power Income Fund.
Boralex filed Tuesday a preliminary short form prospectus with the Canadian securities regulatory authorities in each of the provinces of Canada in connection with the deal.
Boralex is a Kingsey Falls, Quebec-based independent power producer.
| Issuer: | Boralex Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$95 million
|
| Greenshoe: | C$14.25 million
|
| Maturity: | Initially Dec. 31, 2010. Extendible to June 30, 2017
|
| Underwriters: | TD Securities Inc. (lead); CIBC World Markets Inc., National Bank Financial Inc., RBC Dominion Securities Inc., Scotia Capital Inc., Canaccord Genuity Corp., Desjardins Securities Inc., GMP Securities LP, Macquarie Capital Markets Canada Ltd., Cormark Securities Inc.
|
| Coupon: | 6.75%
|
| Conversion premium: | 61%
|
| Conversion price: | C$12.50
|
| Pricing date: | Aug. 24
|
| Reference stock price: | C$7.77
|
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