/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
(TSX:ALC)
ST. CATHARINES, ON,
June 21, 2017 /CNW/ - Algoma Central
Corporation ("Algoma" – www.algonet.com) is pleased to announce the
closing of its previously announced offering of $75,000,000 aggregate principal amount of 5.25%
convertible unsecured subordinated debentures (the "Debentures") at
a price of $1,000 per Debenture on a
bought deal basis to a syndicate of underwriters led by CIBC
Capital Markets, and including Scotia Capital Inc., TD Securities
Inc., National Bank Financial Inc., GMP Securities L.P., Cormark
Securities Inc. and Raymond James Ltd. (collectively, the
"Underwriters"). Algoma has also granted the Underwriters an
over-allotment option to purchase up to an additional $7,500,000 aggregate principal amount of
Debentures at the same price exercisable in whole or in part at any
time for a period of 30 days following closing.
The Debentures will trade on the Toronto Stock Exchange under
the symbol "ALC.DB.A".
The Debentures will mature on June 30,
2024 and bear interest at an annual rate of 5.25% payable
semi-annually in arrears on June 30
and December 31 in each year,
commencing December 31, 2017. At the
holder's option, the Debentures may be converted into common shares
of Algoma ("Shares") at any time prior to the close of business on
the earlier of June 30, 2024 and the
business day immediately preceding the date specified by Algoma for
redemption of the Debentures. The conversion price will be
$21.15 per Share, subject to
adjustment in certain circumstances. Holders converting their
Debentures will receive accrued and unpaid interest thereon to, but
excluding, the date of conversion.
Algoma intends to use the net proceeds of the Offering to fund
the redemption of its outstanding 6.00% convertible unsecured
subordinated debentures due March
2018 (the "Existing Debentures") and for general corporate
purposes. Formal notice of Algoma's intention to redeem the
Existing Debentures will be delivered as soon as is practicable to
the registered holders thereof in accordance with the terms and
conditions of the trust indenture governing the Existing
Debentures.
The securities offered have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United
States absent registration or an applicable exemption from
the registrations requirements of such Act. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy the securities in any jurisdiction.
About Algoma Central
Algoma Central Corporation operates the largest Canadian flag
fleet of dry and liquid bulk carriers on the Great Lakes - St.
Lawrence Waterway, including self-unloading dry-bulk carriers,
gearless dry bulk carriers and product tankers. Algoma also owns
ocean self-unloading vessels operating in international markets.
Algoma provides ship management services for other ship owners. The
Company is expanding into global dry-bulk markets with investments
in businesses specializing in pneumatic cement carrying vessels and
in short-sea dry-bulk shipping.
SOURCE Algoma Central Corporation