StorageVault Canada Inc. (TSXV: SVI) announced today that it has entered an agreement to conduct a bought deal offering of senior debentures for aggregate proceeds of $50.0 million. The agreement was made with a syndicate of underwriters led by Scotiabank and CIBC Capital Markets.
The offering consists of listed senior unsecured hybrid debentures due September 30, 2026 at $1,000 per debenture. The notes will carry a 5.50% annual interest rate payable semi-annually. The debt is to be subordinate to all existing and future senior secured debt of the company.
StorageVault also granted the underwriters the option to further purchase 15% of the principal amount in the offering for an additional $7.5 million within 30 days after the closing of the transaction.
The company said proceeds from the offering are intended to fund potential future acquisition opportunities and general corporate purposes.
The offering is expected to occur on July 19, 2021, subject to customary conditions and regulatory approvals.
StorageVault Canada Inc. last traded at $4.81 on the TSX Venture.
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