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The DATA Group Income Fund announces $45 million offering of convertible debentures
The DATA Group Income Fund announces $45 million offering of convertible debentures
About this update from Data Communications Management Corp.
[{"type":"text","content":"\n\n\n\nBRAMPTON, ON, Apr. 6, 2010 (Canada NewsWire Group) -- /CNW/ -- The DATA Group Income Fund (TSX:DGI.UN) (the \"Fund\") announced today that it has entered into an agreement to sell to a syndicate of underwriters, led by TD Securities Inc., $45 million principal amount of 6.00% convertible unsecured subordinated debentures due June 30, 2017. The Fund has also granted the underwriters an option (the \"Over-allotment Option\"), exercisable in whole or in part at any time up until 30 days after the closing date, to purchase an additional $5 million principal amount of debentures, at the same price. If the Over-allotment Option is exercised in full, the total gross proceeds of the financing will be $50 million.The debentures will bear interest at a rate of 6.00% per annum payable semi-annually in arrears on June 30 and December 31 in each year commencing on December 31, 2010, and will mature on June 30, 2017. Holders may convert the debentures into units of the Fund at a conversion price of $12.20 per unit (the \"Conversion Price\") at any time prior to the earlier of June 30, 2017 and the date fixed by the Fund for redemption.The debentures cannot be redeemed by the Fund before June 30, 2013. On or after June 30, 2013 and prior to June 30, 2015, the Fund has the option to redeem the debentures in whole or in part, from time to time, at a price equal to their principal amount plus accrued interest, provided that the volume weighted average trading price for the units is not less than 125% of the Conversion Price. On or after June 30, 2015, the Fund may redeem the debentures in whole or in part, from time to time, at a price equal to their principal amount plus accrued and unpaid interest.The offering will be made in all provinces of Canada and is expected to close on or about April 27, 2010, subject to regulatory approval.The net proceeds of the offering will be used to repay a portion of The Data Group Limited Partnership's outstanding borrowings under its existing revolving credit facilities.The debentures have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement of such Act. This news release is not an offer of securities for sale in the United States.About the FundT...