* To raise C$150 mln through equity issue
* Syndicate of underwriters led by Scotia Capital
* Proceeds to be used to cut debt, fund capital projects
May 12 (Reuters) - Canada's RONA Corp said it would raise C$150 million ($129 million) by way of a bought-deal financing to reduce debt and fund capital projects.
The home-improvement retailer said a syndicate of underwriters led by Scotia Capital Inc agreed to buy 11.63 million common shares of the company at a price of C$12.90 a share.
The underwriters have an option to purchase up to an additional 1.74 million shares to cover over-allotments. If the option is exercised in full, the gross proceeds will be C$172.53 million.
RONA shares, which have gained about 14 percent this month, closed Tuesday at C$13.60 on the Toronto Stock Exchange.
($1=1.163 Canadian Dollar)
(Reporting by Krishna Chaithanya in Bangalore; Editing by Anil D'Silva) Keywords: RONA/ (krishna.chaithanya@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:krishna.chaithanya.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Syndicate of underwriters led by Scotia Capital
* Proceeds to be used to cut debt, fund capital projects
May 12 (Reuters) - Canada's RONA Corp said it would raise C$150 million ($129 million) by way of a bought-deal financing to reduce debt and fund capital projects.
The home-improvement retailer said a syndicate of underwriters led by Scotia Capital Inc agreed to buy 11.63 million common shares of the company at a price of C$12.90 a share.
The underwriters have an option to purchase up to an additional 1.74 million shares to cover over-allotments. If the option is exercised in full, the gross proceeds will be C$172.53 million.
RONA shares, which have gained about 14 percent this month, closed Tuesday at C$13.60 on the Toronto Stock Exchange.
($1=1.163 Canadian Dollar)
(Reporting by Krishna Chaithanya in Bangalore; Editing by Anil D'Silva) Keywords: RONA/ (krishna.chaithanya@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:krishna.chaithanya.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.