Husky's US$140M Private Placement of Unsecured Debentures

Husky Injection Molding Systems Ltd. successfully completed a US$140 million private placement of five-year unsecured debentures on March 7, 2001. The offering was marketed to institutional investors in Canada and the United States and was significantly oversubscribed. Eleven US investors and four Canadian investors participated in the issue.

The debentures are issued in three series, all of which mature on March 7, 2006; Senior Series A Debentures total US$85 million and carry a fixed rate of 7.63 per cent; Senior Series B Debentures total US$25 million and carry a floating rate of 90-day LIBOR plus 1.9 per cent; and Senior Series C Debentures total C$45 million and carry a fixed rate of 7.46 per cent. Net proceeds of the offering will be used to repay maturing debentures (C$80 million 9.4 per cent senior unsecured debentures, which mature on May 11, 2001) and to substantially repay indebtedness.
Miller Thomson LLP represented Husky Injection Molding Systems Ltd., with a team comprising Eric Russell, Q.C., Steven Wesfield and Joanne Lucas (corporate), Barbara R.C. Doherty (securities) and Gerald Courage (tax). Canadian counsel for the investors was McCarthy Tétrault, with David Woollcombe, François Gilbert and Andrew Armstrong (corporate and securities), and Jim Morand (tax). US counsel for the lenders were Neil Mann and Michael Ebner at Chapman and Cutler of Chicago.