/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
(TSX:ALC)
ST. CATHARINES,
ON, June 27, 2017
/CNW/ - Algoma Central Corporation
("Algoma" – www.algonet.com) is pleased to announce that the
underwriters of the previously announced offering of $75,000,000 aggregate principal amount of 5.25%
convertible unsecured subordinated debentures (the "Debentures")
exercised in full their over-allotment option, resulting in the
issuance of an additional $7,500,000
aggregate principal amount of Debentures (collectively, the
"Offering"). The Debentures trade on the Toronto Stock Exchange
under the symbol "ALC.DB.A".
The syndicate of underwriters was led by CIBC Capital
Markets and included Scotia Capital Inc., TD Securities Inc.,
National Bank Financial Inc., GMP Securities L.P., Cormark
Securities Inc. and Raymond James Ltd.
Algoma is using the net proceeds of the Offering to fund
the redemption (the "Redemption") of its outstanding 6.00%
convertible unsecured subordinated debentures due March 2018 (the "6.00% Debentures") and for
general corporate purposes. The 6.00% Debentures are listed on the
Toronto Stock Exchange under the symbol "ALC.DB". The aggregate
principal amount of the 6.00% Debentures outstanding is
$69,000,000.
A formal notice of redemption (the "Redemption Notice")
has been provided to the holders of the 6.00% Debentures in
accordance with the terms and conditions of the trust indenture
governing the terms of the 6.00% Debentures. Pursuant to the
Redemption Notice, Algoma will redeem the entre outstanding
principal amount of the 6.00% Debentures on July 22, 2017 (the "Redemption Date"), plus
accrued and unpaid interest thereon up to but excluding the
Redemption Date. The total redemption price will be satisfied in
cash.
The securities offered have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, and
may not be offered or sold in the United
States absent registration or an applicable exemption from
the registrations requirements of such Act. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy the securities in any jurisdiction.
About Algoma Central
Algoma Central Corporation operates the largest Canadian
flag fleet of dry and liquid bulk carriers on the Great Lakes - St.
Lawrence Waterway, including self-unloading dry-bulk carriers,
gearless dry bulk carriers and product tankers. Algoma also owns
ocean self-unloading vessels operating in international markets.
Algoma provides ship management services for other ship owners. 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.
SOURCE Algoma Central Corporation