TORONTO, ONTARIO–(Marketwired – June 23, 2014) – Altus Group Limited (“Altus Group”║ or “the Company”) (TSX:AIF) announced today that it plans to redeem all of its outstanding 5.75% Convertible Debentures (the “Debentures”). The Debentures, which have a maturity date of December 31, 2017, will be redeemed by the Company early on July 28, 2014 (the “Redemption Date”) in accordance with the terms of the Debenture trust indenture. The Debentures are listed on the Toronto Stock Exchange under the symbol “AIF.DB”.
The aggregate principal amount of the Debentures is $50 million. On the Redemption Date, Altus Group will pay the holders of the redeemed Debentures a redemption price equal to $1,000 for each $1,000 principal amount of Debentures and all accrued and unpaid interest up to but excluding the Redemption Date. Altus Group intends to use cash on hand or available to be drawn on its credit facilities to pay the redemption price.
Formal notice of redemption is being delivered to the Debenture holders through the Debenture Trustee, BNY Trust Company of Canada, in accordance with the trust indenture. Beneficial holders of the Debentures are encouraged to contact their investment dealer to coordinate the surrender of their Debentures or if they have any questions about the redemption.
Holders of the Debentures have the right to convert their Debentures into Altus Group common shares at a conversion price of $18.60 per share, representing a conversion rate of 53.7634 Altus Group common shares per $1,000 principal amount of Debentures. Assuming that all Debentures holders exercise their right to convert, approximately 2.7 million common shares will be issued from Treasury. No action is required to be taken by holders of the Debentures if they wish to have their Debentures redeemed in cash.
“The strong performance of our share price allows us to redeem the 5.75% Debentures well in advance of their maturity in 2017,” said Angelo Bartolini, Chief Financial Officer. “The early conversion of the Debentures has economic benefits for the Company by lowering net cash distributions, while reducing the debt on our balance sheet and increasing the market liquidity of our shares.”