Business
TransForce Inc. Announces $85 Million Bought-Deal Offering of Convertible Unsecured Subordinated Debentures
This release is intended for distribution in Canada only and is not intended for distributio...
About this update from Tfi International Inc.
[{"type":"text","content":"\n\n\n\n\n\nThis release is intended for distribution in Canada only and is not\n intended for distribution to United States newswire services or for\n dissemination in the United States\n\n\nMONTREAL, Aug. 17, 2011 /CNW Telbec/ - TransForce Inc. (TSX: TFI)\n announced today that it has entered into an agreement with a syndicate\n of underwriters led by National Bank Financial Inc. and RBC Dominion\n Securities Inc. pursuant to which the underwriters have agreed to\n purchase, on a bought-deal basis, convertible unsecured subordinated\n debentures of TransForce in an aggregate principal amount of $85\n million. The debentures will be offered at a price of $1,000 per\n debenture by way of short form prospectus in each of the provinces of\n Canada, as well as in the United States under applicable registration\n statement exemptions. TransForce intends to use the net proceeds of the\n offering for general corporate purposes, to support its program of\n strategic acquisitions and to reduce indebtedness.\n\n\nThe debentures will bear interest at a rate of 5.65% per annum, payable\n semi-annually on March 31 and September 30 each year, commencing on\n March 31, 2012. The debentures will be convertible at the holder's\n option into TransForce common shares at a conversion price of $22.10\n per share, representing a conversion rate of 45.25 TransForce shares\n per $1,000 principal amount of debentures. The debentures will mature\n on September 30, 2018 and may be redeemed by TransForce, in certain\n circumstances, after September 30, 2014.\n\n\nTransForce will grant an over-allotment option to the underwriters of\n the offering, entitling them to purchase, for a period of 30 days from\n the closing of the offering, up to $12.75 million principal amount of\n additional debentures at the offering price of $1,000 per debenture, to\n cover over-allotments and for market stabilization purposes, if any.\n\n\nIn connection with the debenture offering, TransForce will file a\n preliminary short form prospectus in all provinces of Canada by August\n 23, 2011. The prospectus offering is subject to all standard regulatory\n approvals, including that of the Toronto Stock Exchange, and is\n expected to close on or about September 7, 2011.\n\n\nThis press release shall not constitute an offer to sell or the\n solicitation of ...