* Says to offer 12 mln units at C$5 each
* Pricing at a discount of abt 9 pct over Monday's close
* Says proceeds to be used to repay debt
April 27 (Reuters) - Canada's TimberWest Forest Corp said it would raise C$60 million in a discounted bought deal financing and use the proceeds mainly to repay debt.
The timber and land management company said it would offer 12 million stapled units to BMO Capital Markets at C$5 each, a discount of about 9 percent to their Monday's closing price.
The company also granted underwriters an overallotment option of 15 percent more units.
The offering is expected to close on or about May 18, TimberWest said in a statement.
TimberWest also said it agreed with its lenders, regarding an amendment to its bank loan agreement, to remove the requirement that the company pay interest on its convertible debentures by issuing additional convertible debentures in lieu of cash.
TimberWest, which expects to resume paying interest on its convertible debentures in cash on July 15, said it cannot make cash distributions on the stapled units unless its available cash exceeds C$90 million in 2010, C$75 million in 2011, and C$75 million in 2012.
Shares of the company closed down about 4 percent at C$5.27 Tuesday on the Toronto Stock Exchange.
(Reporting by Arnika Thakur in Bangalore; Editing by Gopakumar Warrier) Keywords: TIMBERWESTFORESTCORP/ (arnika.thakur@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arnika.thakur.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. 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.
* Pricing at a discount of abt 9 pct over Monday's close
* Says proceeds to be used to repay debt
April 27 (Reuters) - Canada's TimberWest Forest Corp said it would raise C$60 million in a discounted bought deal financing and use the proceeds mainly to repay debt.
The timber and land management company said it would offer 12 million stapled units to BMO Capital Markets at C$5 each, a discount of about 9 percent to their Monday's closing price.
The company also granted underwriters an overallotment option of 15 percent more units.
The offering is expected to close on or about May 18, TimberWest said in a statement.
TimberWest also said it agreed with its lenders, regarding an amendment to its bank loan agreement, to remove the requirement that the company pay interest on its convertible debentures by issuing additional convertible debentures in lieu of cash.
TimberWest, which expects to resume paying interest on its convertible debentures in cash on July 15, said it cannot make cash distributions on the stapled units unless its available cash exceeds C$90 million in 2010, C$75 million in 2011, and C$75 million in 2012.
Shares of the company closed down about 4 percent at C$5.27 Tuesday on the Toronto Stock Exchange.
(Reporting by Arnika Thakur in Bangalore; Editing by Gopakumar Warrier) Keywords: TIMBERWESTFORESTCORP/ (arnika.thakur@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arnika.thakur.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. 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.