By Rebecca Melvin
New York, Dec. 16 - Chesswood Group Ltd. priced C$20 million of five-year convertible subordinated debentures on a bought-deal basis at par to yield 6.5%, according to a news release.
There is a C$3 million greenshoe for the convertibles, which were bought by a syndicate of underwriters co-led by National Bank Financial Inc. and RBC Capital Markets and including Cormark Securities Inc. and Canaccord Genuity Corp.
Proceeds will be used to fund acquisitions, to fund growth in the finance portfolios of the company's operating subsidiaries and to pay down debt.
The debentures are convertible at a share price of C$21.25 per share, which represents a conversion rate of 47.0588 shares for each bond.
The securities are non-callable until Dec. 31, 2016 and then provisionally callable for one year at 125% of the conversion price.
The debentures have been listed on the Toronto Stock Exchange under the symbol CHW.DB.
The securities are being distributed in Canadian provinces other than Quebec under the company's existing short-form prospectus and via Rule 144A in the United States.
Chesswood is a financial services trust based in Toronto.
| Issuer: | Chesswood Group Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | C$20 million
|
| Greensoe: | C$3 million
|
| Maturity: | Dec. 31, 2018
|
| Bookrunners: | Syndicate co-led by National Bank Financial Inc. and RBC Capital Markets and including Cormark Securities Inc. and Canaccord Genuity Corp.
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion price: | C$21.25
|
| Conversion ratio: | 47.0588 shares
|
| Calls: | Non-callable until Dec. 31, 2016, then provisionally callable for one-year at 125% price hurdle
|
| Settlement date: | Dec. 16
|
| Stock symbol: | Toronto: CHW
|
| Debenture symbol: | Toronto: CHW.DB
|
| Distribution: | Public offering in Canadian provinces except Quebec and Rule 144A
|
| Market capitalization: | C$159.39 million
|
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