By Rebecca Melvin
New York, June 2 – Boralex Inc. has priced C$125 million of five-year convertible debentures on a bought-deal basis to yield 4.5% with an initial conversion premium of 39%, according to a news release Tuesday.
The offering of $1,000 par debentures was bought by a syndicate of underwriters led by National Bank Financial Inc. There is an over-allotment option for a further C$18.75 million of debentures.
The initial conversion price is C$19.60 per common share.
The debentures are hard-call protected until June 30, 2018. After June 30, 2018 and prior to June 30, 2019, the debentures may be redeemed in certain circumstances.
Proceeds will be used to repay debt under the company’s revolving credit facility, with remaining proceeds, as well as the funds available under the revolving credit facility, used to fund future acquisitions, capital projects and general corporate purposes.
General corporate purposes may include redeeming existing 6.75% convertible unsecured subordinated debentures, which become redeemable at par starting on Sept. 30.
The Boralex debentures will be offered under a short form prospectus in each of the provinces of Canada and in the United States under applicable registration statement exemption.
Canadian power generating company Boralex is based in Kingsey Falls, Quebec.
| Issuer: | Boralex Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$125 million
|
| Greenshoe: | C$18.75 million
|
| Maturity: | June 30, 2020
|
| Underwriters: | Syndicate led by National Bank Financial Inc.
|
| Coupon: | 4.5%
|
| Yield: | 4.5%
|
| Conversion premium: | 39%
|
| Conversion price: | C$19.60
|
| Conversion ratio: | 51.0204
|
| Pricing date: | June 2
|
| Stock symbol: | Toronto: BLX
|
| Reference stock price: | C$14.09, as of close June 2
|
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