Saskatchewan Wheat Pool’s $50 million common share offering has successfully closed, as has its $100 million note offering.
After deduction of the underwriters’ fee, the pool received net proceeds of $48.24 million from the share offering.
The offering was sold on a “bought deal” basis to a syndicate of underwriters led by TD Securities Inc., and including Genuity Capital Markets and National Bank Financial Inc. The underwriters have an option to buy 670,000 additional common shares at the issue price of $7.50 at any time up to 30 days after closing.
The pool now has 88,534,137 common shares outstanding.
The note offering was for an eight percent interest rate senior unsecured note due April 8, 2013. After deductions of the underwriters’ fee, the net proceeds were $97.75 million.
The pool intends to use the proceeds to redeem $150 million of outstanding senior subordinated notes with an interest rate of 12 percent, due Nov. 29, 2008. The move will lower its interest costs.
