- ECN Capital Corp. (ECN) has announced a $75 million bought deal offering of senior unsecured debentures
- The underwriters have agreed to purchase $75 million aggregate principal amount of the debentures at a price of $1000 per debenture, which is due by December 31, 2026
- ECN Capital has also granted the underwriters an option to purchase up to an additional $11.25 million of debentures for one month after the closing of the offer
- Proceeds from the offering will be used to redeem or repay outstanding securities and indebtedness as well as for general corporate purposes
- The debentures will bear an interest rate of 6 per cent per year, payable semi-annually
- ECN Capital Corp. (ECN) is up 0.37 per cent and is trading at $10.89 per share at 3:35 p.m. ET
ECN Capital Corp. (ECN) has announced a $75 million bought deal offering of senior unsecured debentures.
It has entered into an agreement with a group of underwriters led by BMO Capital Markets, CIBC Capital Markets, National Bank Financial and RBC Capital Markets.
The underwriters have agreed to purchase $75 million of the debentures at a price of $1000 per debenture.
ECN Capital has also granted the underwriters an option to purchase up to an additional $11.25 million of debentures for one month after the closing of the offer.
Net proceeds from the offering will be used to redeem or repay outstanding securities and indebtedness as well as for general corporate purposes.
The offer is to close on October 28 and is subject to closing conditions.
The debentures will have an interest rate of 6 per cent each year, which is payable semi-annually in money owed on June 30 and December 31.
The first payment will include accumulated and unpaid interest for the period from the closing of the offering up to December 31, 2021. It will mature at the end of 2026.
The debentures won’t be redeemable by ECN Capital before the end of 2024.
ECN Capital will provide between 30-60 days’ notice of any redeemed debentures.
The corporation has an option to repay the principal amount of the debentures by issuing common shares of ECN Capital according to the terms of the indenture.
ECN Capital Corp. (ECN) is up 0.37 per cent and is trading at $10.89 per share at 3:35 p.m. ET.
