On June 21, 2017, Algoma Central Corp. (Algoma) completed its offering of $75 million aggregate principal amount of 5.25-per-cent convertible unsecured subordinated debentures (the Debentures) at a price of $1,000 per debenture on a bought-deal basis to a syndicate of underwriters led by CIBC Capital Markets, and including Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., GMP Securities L.P., Cormark Securities Inc. and Raymond James Ltd. (collectively, the Underwriters).
On June 27, 2017, the Underwriters exercised in full their over-allotment option, resulting in the issuance of an additional $7.5 million aggregate principal amount of Debentures. The Debentures trade on the TSX under the symbol “ALC.DB.A”.
Algoma operates the largest Canadian flag fleet of dry and liquid bulk carriers on the Great Lakes-St. Lawrence Waterways.
The company owns ocean self-unloading vessels operating in international markets, provides ship management services for other ship owners.
Additionally, the company is expanding into global dry-bulk markets with investments in businesses specializing in pneumatic cement carrying vessels and in short-sea dry-bulk shipping.
Algoma was represented by Stikeman Elliott LLP with a team that included Philip Henderson, Cameron MacDonald and Yoni Grundland (corporate/securities), Marie Garneau (banking), and Jonathan Wilson and Ryan Abrahamson (tax).
The Underwriters were represented by Osler, Hoskin & Harcourt LLP with a team that included Desmond Lee, Rosalind Hunter and Douglass Dawson (corporate/securities), Joyce Bernasek (banking), and Tim Hughes and David Davachi (tax).