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Allen-Vanguard Corporation Announces Closing of $300,010,000 Equity Financing
Allen-Vanguard Corporation Announces Closing of $300,010,000 Equity Financing.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT\n\n\nAUTHORIZED OR INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE\n\n\nSERVICES OR FOR PUBLICATION OR DISSEMINATION IN THE UNITED STATES/\n\n\nOTTAWA, Sept. 27 /CNW Telbec/ - Allen-Vanguard Corporation\n("Allen-Vanguard" or the "Company") (TSX:VRS) reported today that it has\nclosed its previously announced public offering of common shares (the\n"Offering"), for gross proceeds of $300,010,000.\n\n\nA syndicate of underwriters, led by Genuity Capital Markets and including\nParadigm Capital Inc., Versant Partners Inc. and Canaccord Adams (together,\nthe "Underwriters") purchased an aggregate of 31,580,000 common shares of the\nCompany at a price of $9.50 per common share. Oppenheimer & Co. Inc.\nparticipated as a special selling group member in the Offering of common\nshares on an exempt basis in the United States. In addition, the Company has\ngranted the Underwriters an option to purchase up to an additional 4,737,000\ncommon shares (equal to 15% of the Offering) at the issue price of $9.50 per\ncommon share, which option shall be exercisable for 30 days following the\nclosing of the Offering.\n\n\nThe net proceeds from the Offering will be used to repay certain debt\nobligations incurred by the Company pursuant to the acquisition of Med-Eng\nSystems Inc. ("Med-Eng"). The net proceeds from the Offering will be used, in\norder of priority: (i) to repay to the vendors of Med-Eng (a) $150 million of\nsubordinated debt (plus accrued interest thereon); and (b) approximately\n$40.6 million of subordinated debt (plus accrued interest thereon)\nrepresenting the excess working capital of Med-Eng at the closing of the\nacquisition of Med-Eng; and (ii) to repay outstanding borrowings on the\nrevolving credit facility (the "Revolver") and a portion of the term debt\nfacility (the "Term Debt Facility").\n\n\n"We are very pleased with the success of this offering, which exceeded\nour target objective," said David E. Luxton, Company President and CEO. "It\nattracted several new U.S. and Canadian institutional investors, as well as\nadditional investment from a number of existing institutional shareholders. We\nextend a warm welcome to our new shareholders, and thank all ...