Rogers Sugar Upsizes Convertible Debenture Offering to $100M
Rogers Sugar Inc. Expands Convertible Debenture Offering
Rogers Sugar Inc. (TSX: RSI) has announced an exciting development in its financial strategy. The company is substantially increasing the size of its already planned public offering of convertible debentures to a remarkable $100 million. This opportunity allows Rogers Sugar to continue strengthening its financial position and enables investors to participate in its anticipated growth.
Details of the Convertible Debenture Offering
The offering comprises the Eighth Series convertible unsecured subordinated debentures, which will be issued at a competitive price of $1,000 each. These Offered Debentures will yield an attractive interest rate of 6.0% per annum, with payments scheduled to be made semi-annually on June 30 and December 31, starting June 30, 2025. The maturity date is set for June 30, 2030, creating a structured timeline for investors to consider.
Conversion and Redemption Features
Investors will find significant value in the convertible nature of these debentures. Holders can convert their debentures into common shares of Rogers Sugar at a conversion price of $7.10 per share. This conversion option remains valid until 5:00 p.m. on the day before the maturity date or the day before any redemption notice is issued by Rogers Sugar. Notably, these debentures won’t be redeemable until after June 30, 2028, ensuring investors benefit from their interest until that time.
Underwriter Syndicate and Over-Allotment Option
A well-structured syndicate of underwriters led by TD Securities Inc. and Scotiabank oversees the offering. Additionally, the underwriters have been granted an over-allotment option, which allows them to purchase up to $15 million more in debentures within 30 days post-closing, should the initial offering demand exceed expectations.
Utilization of Proceeds from the Offering
The funds raised from this offering will be strategically allocated to reduce outstanding amounts under the credit facility of Lantic Inc., a subsidiary of Rogers Sugar, and for general corporate purposes. This prudent financial management will ensure a positive trajectory for the company's operational capacities.
Regulatory Approval and Offering Timelines
In compliance with regulatory expectations, the debentures will be available across Canada pursuant to a new prospectus supplement. This documentation will be filed promptly to maintain adherence to legal requirements. The target closing date for the offering is projected to occur around February 19, 2025, contingent on receiving necessary approvals from regulatory bodies and the Toronto Stock Exchange.
About Rogers Sugar
Rogers Sugar holds a venerable position in the Canadian market, established under national laws with a reputation for excellence in sugar refinement. The company owns Lantic, which has been a trusted brand in sugar for more than 135 years, operating several refineries and processing facilities across Canada. The brand is recognized for its commitment to quality, providing a diverse range of sugar products that cater to both eastern and western markets.
Commitment to Quality
The organization's focus on quality is evident in its vast product offerings, including granulated, brown, and specialty syrups, which are beloved by consumers. Furthermore, Rogers Sugar’s subsidiary, The Maple Treat Company, enhances its portfolio with maple syrup products sold in numerous countries, reinforcing its commitment to servicing diverse markets.
Frequently Asked Questions
1. What is the amount of the convertible debenture offering announced by Rogers Sugar?
The convertible debenture offering has been increased to $100 million.
2. Who is managing the offering?
A syndicate of underwriters, co-led by TD Securities Inc. and Scotiabank, is managing the offering.
3. What is the interest rate on the Offered Debentures?
The Offered Debentures will bear an interest rate of 6.0% per annum.
4. When is the maturity date of the debentures?
The debentures are set to mature on June 30, 2030.
5. How will the proceeds from the offering be used?
The proceeds will reduce amounts owed under the credit facility of Lantic Inc. and fund general corporate activities.
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