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Rocky Mountain Dealerships Inc. announces intention to acquire all of its outstanding 7.00% convertible unsecured subordinated debentures
CALGARY, Feb. 8, 2012 /CNW/ - Rocky Mountain Dealerships Inc. (" Rocky ") ( TSX: RME )( TSX...
About this update from Roland Mineral Enterprises Corp.
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Feb. 8, 2012 /CNW/ - Rocky Mountain Dealerships Inc. (\"Rocky\") (TSX: RME)(TSX: RME.DB) announced today that it intends to make an offer (the \"Offer\") to purchase all of its 7.00% convertible unsecured subordinated\n debentures due September 30, 2017 (the \"Debentures\") at a purchase price of $1,125 for each $1,000 principal amount of\n Debentures (the \"Offer Price\"), representing a premium of $125 to the face value of the Debentures\n per $1,000 principal amount.  The Offer also represents a premium of\n $55 to the closing price of $1,070 on the Toronto Stock Exchange (\"TSX\") on Wednesday, February 8, 2012, and a premium of approximately $49 to\n the volume weighted average trading price of $1,076 on the TSX for the\n 30 trading days ended Wednesday, February 8, 2012, in each case per\n $1,000 principal amount.\n\n\nIn connection with the Offer, Rocky also intends to hold a meeting (the\n \"Meeting\") for holders of the Debentures (\"Debentureholders\") on or about March 23, 2012, in Calgary, Alberta, to consider and\n approve amendments to the trust indenture governing the Debentures that\n will permit Rocky to, within 30 days of the expiry of the Offer, redeem\n any Debentures not tendered to the Offer at a redemption price equal to\n the Offer Price (the \"Redemption\").\n\n\nThere is currently $31,500,000 aggregate principal amount of Debentures\n outstanding.  Assuming all of the Debentures are purchased pursuant to\n the Offer and/or the Redemption, the aggregate purchase price to Rocky,\n before costs and expenses of the Offer and Redemption and not including\n accrued and unpaid interest payable on the Debentures, will be\n $35,437,500, which Rocky intends to finance with available working\n capital and the funds from an amended credit facility expected to be\n provided by a syndicate of lenders.\n\n\nRocky's CEO, Matt Campbell, stated, \"We believe that the Offer and\n related Redemption will enhance shareholder value by reducing Rocky's\n overall cost of financing by refinancing the Debentures with available\n working capital and lower-cost bank debt.\"\n\n\nDebentureholders who tender their Debentures to the Offer will receive\n accrued and unpaid interest on such Debentures up to and including the\n date the Debentures are taken up by Rocky under the Offer. \n Debenturehol...