Sprott Power wraps up USD 30.4m debt issue to fund Shear Wind buy
Aug 28, 2012 - Canadian firm Sprott Power Corp (TSE:SPZ) said today it had concluded the CAD-30-million (USD 30.4m/EUR 24.2m) debentures sale, with the proceeds of which it will finance the takeover of wind farm developer Shear Wind (CVE:SWX).
The company sold 30,000 extendible convertible unsecured subordinated debentures with a coupon of 6.75%. It has also provided a 30-day over-allotment option of up to CAD 4.5 million.
If the Shear Wind acquisition is completed successfully, the debentures will mature on December 31, 2017. If the takeover was to fall through, the maturity date will be December 31, 2012. The debentures will be convertible into Sprott Power common shares at a conversion price of CAD 1.30 apiece, as soon as the acquisition is finalised.
The debenture issue's syndicate of underwriters was led by Canaccord Genuity Corp.
Sprott Power develops, owns and operates renewable energy projects. Earlier this month it agreed to buy all of Shear Wind for some CAD 33 million in cash.