Rogers Sugar Inc. Announces Public Offering of CAD $75 Million Eighth Series Convertible Debentures
Montreal, Canada – Rogers Sugar Inc. (Rogers Sugar or the Company), a leading producer and marketer of sugar and specialty products, has announced a public offering (the “Offering”) of CAD $75 million aggregate principal amount of Eighth Series convertible unsecured subordinated debentures (the “Offered Debentures”). The Offering is expected to close on or about February 23, 2025, subject to customary closing conditions.
Key Details of the Offering
The Offered Debentures 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. The Offered Debentures will be convertible into common shares of Rogers Sugar at a conversion price of CAD $10.50 per common share.
Impact on Rogers Sugar
The proceeds from the Offering will be used by Rogers Sugar for general corporate purposes, which may include working capital, capital expenditures, debt repayment, and potential acquisitions. The Company believes that the Offering will provide it with additional financial flexibility to pursue growth opportunities and manage its business effectively.
Impact on the World
The Offering by Rogers Sugar is a part of the larger trend of companies in the sugar industry seeking to raise capital through debt offerings. This trend is driven by several factors, including increasing raw material costs, supply chain disruptions, and the need for investment in modernization and capacity expansion. The proceeds from these offerings can be used to improve operational efficiency, reduce debt, and invest in research and development.
Availability of Prospectus and Prospectus Supplement
The base shelf prospectus for the Offering is currently available on SEDAR (System for Electronic Document Analysis and Retrieval) under Rogers Sugar’s profile. The prospectus supplement relating to the Offering will be available on SEDAR within two business days of the filing thereof.
It is important to note that the Offering is not for distribution in the United States or over United States wire services. Rogers Sugar has filed a registration statement (including a base shelf prospectus) with the U.S. Securities and Exchange Commission (SEC) for the Offering, but the securities described in the prospectus have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, 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.
Conclusion
Rogers Sugar’s announcement of a CAD $75 million public offering of Eighth Series convertible debentures is an important development for the Company as it seeks to strengthen its financial position and pursue growth opportunities. The proceeds from the Offering will provide Rogers Sugar with additional flexibility to manage its business effectively and weather any challenges in the sugar industry. The Offering is part of a larger trend of companies in the industry seeking to raise capital through debt offerings, which can help improve operational efficiency, reduce debt, and invest in research and development.
- Rogers Sugar announces CAD $75 million public offering of Eighth Series convertible debentures
- Proceeds to be used for general corporate purposes
- Interest rate of 6.0% per annum, semi-annually payable
- Convertible into common shares at CAD $10.50 per share
- Prospectus and prospectus supplement available on SEDAR
- Not for distribution in the United States or over U.S. wire services
As a curious human, I’m always excited to learn about such financial developments. It’s fascinating to see how companies like Rogers Sugar are adapting to the challenges in their industry and seeking to strengthen their financial position. And as an assistant, I’m here to help you make sense of it all!
