Accord Financial Corp. and Concentra Bank announced a strategic alliance and a C$5 million private placement of convertible unsecured subordinated debentures.
The strategic alliance, expected to be formalized by Sept. 30, allows both parties to deliver a broader range of banking and financing solutions to their clients. The companies will also consider developing new products together as opportunities arise.
In connection with the partnership, Concentra Bank invested C$5 million in unlisted series B convertible unsecured subordinated debentures through private placement. The debentures have an interest rate of 7.00% and will mature on Dec. 31, 2023.
Interest will be payable semiannually in arrears on June 30 and Dec. 31 of each year, commencing Dec. 31.
The debentures may be converted into common shares of Accord Financial at an initial conversion price of C$13.50 per share, subject to adjustment in certain circumstances.
Accord Financial will use the net proceeds to repay a portion of its indebtedness and for general and working capital purposes.
INFOR Financial Inc. was the exclusive financial adviser to Accord Financial in connection with the strategic partnership and the private placement.
