Revised Debt Subscription Receipts Pricing from Mattr Corp.
Mattr Corp. has issued a correction concerning its earlier announcement regarding the pricing of its debt subscription receipts. Initially, the yield to maturity for the Subscription Receipts was communicated as 6.375%. However, it has been updated to a corrected yield of 6.735%, ensuring clarity for investors.
Offering Details
Based in Toronto, Mattr Corp. (TSX: MATR) has entered into an underwriting agreement as part of a private placement offering. The agreement involves the sale of 125,000 debt subscription receipts, each priced at $1,018.75, which translates to a total gross proceeds of about $129.3 million. These receipts will provide investors with a new 7.25% senior unsecured note on satisfying certain conditions. Importantly, the receipt holders will not require any further action to convert these receipts to notes, enhancing the appeal for potential investors.
Use of Proceeds
The net proceeds from this offering are earmarked for part of the purchase price related to Mattr’s indirect acquisition of AmerCable Incorporated. This acquisition is anticipated to close within the first quarter of the coming year, indicating Mattr's proactive approach to growth and expansion.
Executive Insight
Tom Holloway, the CFO of Mattr, expressed optimism regarding this offering, stating that it contributes to capital structure stability. He acknowledged the steadfast support from investors, pointing out that this move not only secures funding for the acquisition but also allows for fixed-rate advantages once the associated conditions are met.
Subscription Receipts Offering
The Subscription Receipts are being offered through TD Securities and National Bank Financial Markets. It is noteworthy that these receipts are available for sale only to accredited investors within Canada, adhering to Canadian securities regulations. In the United States, they are being offered to qualified institutional buyers under Rule 144A of the U.S. Securities Act. Furthermore, there are provisions for potential sales outside the United States in compliance with Regulation S.
About Mattr Corp.
Mattr Corp. is recognized as a forward-thinking materials technology company dedicated to improving critical infrastructure markets such as transportation, communication, energy, and water management. With two distinct business segments—Composite Technologies and Connection Technologies—Mattr is committed to fostering responsible infrastructure renewal processes, thereby minimizing risks and enhancing operational performance.
Contact Information
For further inquiries, please reach out to: Meghan MacEachern, VP of External Communications and ESG.
Frequently Asked Questions
What is the corrected yield to maturity for Mattr's Subscription Receipts?
The corrected yield to maturity is reported as 6.735% per Subscription Receipt.
What are Subscription Receipts used for in this offering?
Subscription Receipts enable investors to acquire senior unsecured notes of Mattr upon satisfying certain conditions.
How much capital is Mattr looking to raise through this offering?
Mattr aims to raise approximately $129.3 million through this private placement of Subscription Receipts.
What is the purpose of the Subscription Receipts offering?
The proceeds will be used for acquisitions, specifically to fund the purchase of all shares of AmerCable Incorporated.
As of when is the Subscription Receipts offering expected to close?
The Offering is projected to close around December 19, 2024, subject to customary closing conditions.
