Canada's Clearwater Seafoods Income Fund said Monday it is seeking up to $50 million in new financing to improve the company's capital structure and allow it to pursue potential acquisitions.
I wonder what Risley is looking to acquire?
Possibly a piece of the FPI pie?
Now that would be a surprise - wouldn't it?
Read the News Release
Clearwater Seafoods Income Fund Raises Funds to Enhance Capital Structure and Pursue Potential Acquisitions
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
HALIFAX, Feb. 19 /CNW/ - Clearwater Seafoods Income Fund (TSX: CLR.UN)
("the Fund") and Clearwater Seafoods Limited Partnership ("Clearwater") today
announced that the Fund has entered into an agreement with a syndicate of
underwriters led and bookrun by TD Securities Inc. with co-lead underwriters
BMO Capital Markets and Scotia Capital Inc., and including CIBC World Markets
Inc., National Bank Financial Inc., and Beacon Securities Limited, to issue to
the public on a bought-deal basis, convertible unsecured subordinated
debentures (the "Debentures") for $1,000 per Debenture for gross proceeds of
$43,500,000 (the "Offering"). In addition, the Fund has granted the syndicate
an over-allotment option, exercisable for a period of 30 days following
closing, to purchase an additional $6,525,000 of Debentures which, if
exercised, would increase the gross proceeds of the Offering to $50,025,000.
The Debentures will be convertible into units of the Fund (the "Units")
at the option of the holder at a conversion price of $5.90 per Unit, subject
to adjustment in certain events. Closing of the Offering is expected to occur
on or about March 9, 2007, subject to satisfaction of customary conditions
including receipt of all necessary regulatory approvals.
The net proceeds of the Offering will be used to enhance Clearwater's
capital structure and more importantly to provide the flexibility to allow
Clearwater to pursue potential accretive acquisitions that will be a strategic
fit with its plan for growth.
The Debentures will bear interest at a rate of 7.25% per annum, payable
semi-annually in arrears on March 31 and September 30 of each year commencing
on September 30, 2007. The Debentures will mature on March 31, 2014.
The Fund will file a preliminary short-form prospectus relating to the
issuance of the Debentures with securities commissions and similar regulatory
authorities in each of the provinces of Canada except Quebec.
This news release does not constitute an offer to sell, or the
solicitation of an offer to buy, any securities in any jurisdiction. The
Debentures being offered have not been and will not be registered under the
United States Securities Act of 1933 and state securities laws. Accordingly,
the Debentures may not be offered or sold in the United States except pursuant
to applicable exemptions from registration.
About Clearwater
Clearwater is recognized for its consistent quality, wide diversity and
reliable delivery of premium seafood, including scallops, lobster, clams, cold
water shrimp, crab and groundfish.
Since its founding in 1976 Clearwater has invested in science, people,
technology, resource ownership and resource management to preserve and grow
its seafood resource. This commitment has allowed it to remain a leader in the
global seafood industry.
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