By Rebecca Melvin
New York, Aug. 13 - Canexus Corp. priced C$100 million of 7.5-year convertible debentures on a bought-deal basis at par to yield 6% with an initial conversion premium of 39%, according to a news release.
The debentures, for which there is a greenshoe of up to an additional C$15 million of debentures, were being sold via a syndicate of underwriters co-led by Scotia Capital Inc., CIBC and National Bank Financial Inc.
The debentures are convertible at a rate of C$11.35 per share.
The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange. The debentures will be offered in each of the provinces of Canada other than the province of Quebec by way of a short form prospectus, and by way of Rule 144A private placement in the United States.
Proceeds will be used to help fund incremental unit train capability at the North American Terminal Operations at Bruderheim, Alta., and to redeem its 8% unsecured subordinated series 1 convertible debentures due Dec. 31, 2014. Remaining proceeds will be used to repay bank debt.
Canexus is a Calgary, Alta.-based producer of sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries.
| Issuer: | Canexus Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$100 million
|
| Greenshoe: | C$15 million
|
| Maturity: | Dec. 31, 2020
|
| Underwriters: | Syndicate co-led by Scotia Capital Inc., CIBC and National Bank Financial Inc.
|
| Coupon: | 6%
|
| Price: | Par, C$1,000
|
| Yield: | 6%
|
| Conversion premium: | 39%
|
| Conversion price: | C$11.35 per trust unit
|
| Conversion ratio: | 88.1057 trust units per debenture
|
| Pricing date: | Aug. 13
|
| Settlement date: | Aug. 30
|
| Stock listing: | Toronto: CUS
|
| Stock reference: | C$8.17, at close Aug. 12
|
| Distribution: | Rule 144A and short form prospectus in Canadian provinces other than Quebec
|
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