Rogers Sugar Income Fund

Rogers Sugar Income Fund

March 18, 2010 15:22 ET

Rogers Sugar Income Fund Announces a $50 Million Bought Deal Convertible Debenture Offering

MONTREAL, QUEBEC--(Marketwire - March 18, 2010) -


Rogers Sugar Income Fund (the "Fund") (TSX:RSI.UN) announced today a public offering, on a bought deal basis, of $50 million principal amount of convertible unsecured subordinated debentures with an interest rate of 5.70% per annum, payable semi-annually on the last day of April and October commencing on October 31, 2010. The debentures will mature on April 30, 2017.

The offering is being made through a syndicate of underwriters led by BMO Capital Markets and TD Securities, on a bought deal basis. The debentures will be convertible at the holder's option into units of the Fund at any time prior to the maturity date and the business day immediately preceding the date fixed by the Fund for redemption at a conversion price of $6.50 per unit. The debentures will not be redeemable prior to April 30, 2013. On and after April 30, 2013 and prior to April 30, 2015, the debentures may be redeemed in whole or in part from time to time at the Fund's option, at a price equal to their principal amount plus accrued and unpaid interest, provided that the current market price for the period ending five trading days preceding the date upon which the notice of redemption is given is at least 125% of the conversion price. After April 30, 2015 and prior to the maturity date, the debentures may be redeemed in whole or in part from time to time at the Fund's option at a price equal to their principal amount plus accrued and unpaid interest.

The net proceeds of the offering will be used to redeem all of the outstanding $50 million principal amount 6.0% convertible unsecured subordinated debentures of the Fund due June 29, 2012. The redemption is intended to take place on or about June 29, 2010.

The offering is subject to normal regulatory approvals including approval of the Toronto Stock Exchange and is expected to close on or about April 8, 2010.

About Rogers Sugar Income Fund

The Fund is an open-ended, limited purpose trust established under the laws of the Province of Ontario. The Fund holds all of the common shares of Lantic Inc. Lantic Inc. operates cane sugar refineries in Montreal, Québec and Vancouver, British Columbia, as well as the only Canadian sugar beet processing facility in Taber, Alberta. Lantic Inc.'s sugar products are marketed under the "Lantic" trademark in Eastern Canada, and the "Rogers" trademark in Western Canada, and include granulated, icing, cube, yellow and brown sugars, liquid sugars and specialty syrups.

This document may contain forward-looking statements, relating to the Fund's operations or to the environment in which it operates, which are based on the Fund's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond the Fund's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in other public filings. In addition, these forward-looking statements relate to the date on which they are made. The Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

The debentures and the trust units issuable upon conversion of the debentures have not been and will not be registered under the United States Securities Act of 1933 and accordingly will not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to applicable exemptions from the registration requirements.

Contact Information

  • Mr. Daniel L. Lafrance
    Senior Vice-President Finance and CFO of Lantic Inc.
    Administrator of Rogers Sugar Income Fund
    (514) 940-4350