Business
Rocky Mountain Dealerships Inc. Closes $31.5 Million Debenture Financing
Rocky Mountain Dealerships Inc. Closes $31.5 Million Debenture Financing
About this update from Roland Mineral Enterprises Corp.
[{"type":"text","content":"\n\n\n\n Jul. 27, 2010 (Canada NewsWire Group) -- \n \n \n /NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES/\n\nIssued: 18,259,849 shares\n(Stock Symbol "RME" - TSX)\n\nCALGARY, July 27 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky Mountain" or the "Company"), announced today that it has closed its previously announced debenture financing by way of a short form prospectus on a bought deal basis by completing the sale of 31,500 convertible unsecured subordinated debentures of the Company ("Debentures"), including 1,500 Debentures issued pursuant to the full exercise of the over-allotment option, at a price of $1,000 per Debenture, representing an aggregate issue of $31,500,000 principal amount of Debentures (the "Offering"). The Offering was completed through a syndicate of underwriters co-led by National Bank Financial Inc. and RBC Capital Markets and including BMO Nesbitt Burns Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd. and Raymond James Ltd.\nThe Debentures will mature on September 30, 2017 ("Maturity Date") and accrue interest at the rate of 7.00% per annum payable semi-annually in arrears on March 31 and September 30 in each year, commencing on September 30, 2010. At the holder's option, the Debentures may be converted into common shares of the Company at any time prior to the close of business on the earlier of the Maturity Date and the business day immediately preceding the date fixed for redemption at a conversion price of $10.65 per share, subject to adjustment in certain events ("Conversion Price").\nThe Debentures are direct, unsecured obligations of Rocky Mountain, subordinated to other indebtedness of the Company and ranking equally with all other unsecured subordinated indebtedness.\nThe Debentures are not redeemable prior to September 30, 2014. On or after September 30, 2014 and prior to September 30, 2015, the Debentures may be redeemed in whole or in part at the option of the Company on not more than 60 days and not less than 30 days prior notice at a price equal to their principal amount plus accrued and unpaid interest, provided that the market price of the Company's common shares on the date on which the notice of redemption is given is not less than 125% of...