ECN Capital Secures C$75 Million Through Convertible Debentures
ECN Capital Completes C$75 Million Debenture Offering
Today, ECN Capital Corp. (TSX: ECN) has successfully closed an impressive C$75 million offering of convertible senior unsecured debentures, marking a significant milestone for the company. This strategic move not only demonstrates ECN Capital's robust standing but also their commitment to active financial engagement in the market.
Details of the Offering
The recently completed offering, which consists of debentures maturing on April 30, 2030, was spearheaded by a collaborative effort from prominent underwriters including CIBC Capital Markets and National Bank Financial Markets. This endeavor has provided the company with essential funding that will further enhance ECN Capital's operations and growth initiatives.
Key Terms of the Debentures
These debentures carry an attractive interest rate of 6.50% per annum. This interest is scheduled to be paid semi-annually, commencing from October 31, 2025. Each holder of the debentures has the flexibility to convert them into common shares of ECN Capital at an initial price of C$3.77 per share, which creates an appealing conversion opportunity for investors.
Trading on the Toronto Stock Exchange
Starting today, these debentures will be listed on the Toronto Stock Exchange under the symbol “ECN.DB.C.” This move is anticipated to attract more attention from investors looking for secure and profitable investment options.
Use of Proceeds from the Offering
ECN Capital has earmarked the net proceeds from this offering for the redemption of its existing 6.00% senior unsecured debentures, which are due on December 31, 2025. This proactive decision is expected to bolster the company’s financial health and streamline its debt management strategy.
Redemption of Existing Debentures
The redemption will take place on April 25, 2025. Registered holders of the 2025 debentures will receive timely notifications regarding the redemption process, ensuring clarity and transparency throughout the transactions. ECN Capital has secured the required majority consent from its lenders to facilitate this redemption ahead of maturity.
Investors Encouraged to Engage
Beneficial holders of the debentures are encouraged to reach out to their investment dealers for any inquiries concerning the redemption process. This is a vital step to ensure all stakeholders are informed and able to make educated decisions.
About ECN Capital Corp.
ECN Capital Corp. has established itself as a significant player in the finance sector, with managed assets totaling US$6.9 billion. The company provides essential business services to a variety of partners, including banks and institutional investors. Their focus on originating, managing, and advising on credit assets ensures that they meet the diverse needs of their clients.
Contact Information
For further inquiries, please contact:
Katherine Moradiellos
561-631-8739
kmoradiellos@ecncapitalcorp.com
Frequently Asked Questions
What type of offering did ECN Capital complete?
ECN Capital completed a C$75 million offering of convertible senior unsecured debentures.
When will the interest on the debentures be paid?
The interest on the debentures will be paid semi-annually starting from October 31, 2025.
What is the maturity date of these debentures?
The debentures will mature on April 30, 2030.
How will ECN Capital use the proceeds from this offering?
The proceeds will be used to redeem existing 6.00% senior unsecured debentures due on December 31, 2025.
How can investors get more information about the debenture redemption?
Beneficial holders of the debentures should contact their investment dealers for any questions regarding the redemption process.
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