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Algoma Central Corporation Announces Closing of Bought Deal Financing
Algoma Central Corporation Announces Closing of Bought Deal Financing Canada NewsW...
About this update from Algoma Central Corporation
[{"type":"text","content":"\n\n\n\nAlgoma Central Corporation Announces Closing of Bought Deal Financing\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nST. CATHARINES, ON, June 21, 2017\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\n(TSX:ALC)\n\n\n\nST. CATHARINES, ON, June 21, 2017 /CNW/ - Algoma Central Corporation (\"Algoma\" – www.algonet.com) is pleased to announce the closing of its previously announced offering of $75,000,000 aggregate principal amount of 5.25% convertible unsecured subordinated debentures (the \"Debentures\") at a price of $1,000 per Debenture on a bought deal basis to a syndicate of underwriters led by CIBC Capital Markets, and including Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., GMP Securities L.P., Cormark Securities Inc. and Raymond James Ltd. (collectively, the \"Underwriters\"). Algoma has also granted the Underwriters an over-allotment option to purchase up to an additional $7,500,000 aggregate principal amount of Debentures at the same price exercisable in whole or in part at any time for a period of 30 days following closing.\n\nThe Debentures will trade on the Toronto Stock Exchange under the symbol \"ALC.DB.A\". \n\nThe Debentures will mature on June 30, 2024 and bear interest at an annual rate of 5.25% payable semi-annually in arrears on June 30 and December 31 in each year, commencing December 31, 2017. At the holder's option, the Debentures may be converted into common shares of Algoma (\"Shares\") at any time prior to the close of business on the earlier of June 30, 2024 and the business day immediately preceding the date specified by Algoma for redemption of the Debentures. The conversion price will be $21.15 per Share, subject to adjustment in certain circumstances. Holders converting their Debentures will receive accrued and unpaid interest thereon to, but excluding, the date of conversion. \n\nAlgoma intends to use the net proceeds of the Offering to fund the redemption of its outstanding 6.00% convertible unsecur...