Rogers Sugar Announces Increased Bought Deal Public Offering of Convertible Debentures
Montreal, February 11, 2025 – Rogers Sugar Inc. (the “Company” or “Rogers Sugar”) is pleased to announce an expansion of its previously announced bought deal public offering (the “Offering”) of Eighth Series convertible unsecured subordinated debentures (the “Offered Debentures”). The Offering is now set to raise an aggregate principal amount of $100,000,000.
Key Terms of the Offering
The Offered Debentures will be issued at an offering price of $1,000 per Offered Debenture. These securities will bear interest at an annual rate of 6.0% per annum, payable semi-annually on the last day of June and December, commencing on June 30, 2025.
Availability of Prospectus and Supplement
The base shelf prospectus for the Offering is currently accessible, and a prospectus supplement will be available within two business days on SEDAR+. The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements.
Impact on Rogers Sugar
Rogers Sugar’s announcement of an increased offering size indicates a strong demand for its securities in the market. The net proceeds from the Offering will enable the Company to strengthen its balance sheet, reduce its debt, and potentially fund strategic initiatives. This could lead to increased financial flexibility, improved debt metrics, and potentially higher credit ratings.
Global Implications
The sugar industry, a significant contributor to the global food supply chain, could benefit from Rogers Sugar’s financial strengthening. With a stronger balance sheet, Rogers Sugar may be better positioned to weather market volatility and maintain production levels. Additionally, the increased demand for Rogers Sugar’s securities could signal investor confidence in the industry as a whole. However, the potential for increased interest rates due to inflation concerns could negatively impact the cost of borrowing for sugar producers.
Conclusion
Rogers Sugar’s announcement of an increased bought deal public offering of convertible debentures is a positive sign for the Company and the sugar industry. The net proceeds from the Offering will provide Rogers Sugar with financial flexibility and potentially fund strategic initiatives. The global implications include a stronger balance sheet for the Company and potential investor confidence in the sugar industry. However, the potential for increased interest rates could introduce challenges.
- Rogers Sugar increases bought deal public offering of convertible debentures to $100,000,000.
- Interest rate of 6.0% per annum, payable semi-annually.
- Prospectus supplement to be available on SEDAR+ within two business days.
- Strong demand for Rogers Sugar’s securities in the market.
- Net proceeds to strengthen balance sheet, potentially fund strategic initiatives.
- Positive implications for the sugar industry and investor confidence.
- Potential for increased interest rates could introduce challenges.
