Crown Capital Partners Inc. is offering $20 million aggregate principal amount of its 6.00% convertible unsecured subordinated debentures at a price of $1,000 per debenture, according to a short-form prospectus filed by the company.
The debentures will be issuable in denominations of $1,000 and multiples thereof.
They will bear an interest rate of 6.00% per annum. Interest on the debentures will be paid semiannually, in arrears, on June 30 and December 31 of each year, commencing Dec. 31. The first interest payment will include interest accrued from, and including, the closing of the offering until Dec. 31.
The debentures will have a maturity date of June 30, 2023.
Each debenture will be convertible into the company's common shares at any time prior to the close of business on the business day prior to June 30, 2023, at a conversion price of $13.70 per common share.
The company has also granted the underwriters a 30-day option to purchase up to an additional $3 million principal amount of debentures.
The net proceeds from the offering are estimated to be $19.2 million after deduction of the underwriters' fee, but before deduction of the expenses. If the overallotment option is exercised in full, the net proceeds will be around $22.1 million.
The company intends to use the net proceeds to repay indebtedness under its credit facility and, subsequently, fund new financing activities.
BMO Nesbitt Burns Inc., National Bank Financial Inc., AltaCorp Capital Inc., CIBC World Markets Inc., Cormark Securities Inc., GMP Securities LP, Raymond James Ltd. and TD Securities Inc. are underwriters for the offering.
