Algoma Central Corporation Announces Increase to Previously Announced Bought Deal Offering of 6.20% Convertible Unsecured Subordinated Debentures

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Postmedia has not reviewed the content. by GlobeNewswire Algoma Central Corporation Announces Increase to Previously Announced Bought Deal Offering of 6.20% Convertible Unsecured Subordinated DebenturesAuthor of the article:NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountST. CATHARINES, Ontario, Oct. 21, 2026 (GLOBE NEWSWIRE) — Algoma Central Corporation (“Algoma”) (TSX:ALC) announced today that, due to strong demand, it has entered into a revised agreement with a syndicate of underwriters led by CIBC Capital Markets (collectively, the “Underwriters”) to increase the size of the previously announced offering. Under the revised agreement, the Underwriters have agreed to purchase $70,000,000 aggregate principal amount of 6.20% convertible unsecured subordinated debentures (the “Debentures”) at a price of $1,000 per Debenture (the “Public Offering”). Algoma has also granted the underwriters an over-allotment option to purchase up to an additional $10,500,000 aggregate principal amount of Debentures at the same price exercisable in whole or in part at any time for a period of 30 days following closing.This advertisement has not loaded yet, but your article continues below.Concurrent with the increased Public Offering, Algoma and E-L Financial Corporation Limited (“E-L”) have also agreed to increase the size of the non-brokered private placement (the “Concurrent Private Placement”). Under the revised Concurrent Private Placement, Algoma has agreed to issue, on a non-brokered private placement basis, $20,000,000 aggregate principal amount of Debentures to E-L on the same terms as the Public Offering. The securities issued pursuant to the Concurrent Private Placement will be subject to a statutory hold period of four months and one day from the date of closing.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe Debentures will mature on December 31, 2031 and will bear interest at an annual rate of 6.20% payable semi-annually on June 30 and December 31 of each year, commencing June 30, 2027. At the holder’s option, the Debentures may be converted into common shares of Algoma (“Shares”) at any time prior to the close of business on the earlier of December 31, 2031 and the business day immediately preceding the date specified by Algoma for redemption of the Debentures. The conversion price will be $46.95 per Share (the “Conversion Price”), subject to adjustment in certain circumstances.This advertisement has not loaded yet, but your article continues below.The Debentures will not be redeemable before December 31, 2029. On and after December 31, 2029 and prior to December 31, 2030, the Debentures may be redeemed in whole or in part from time to time at Algoma’s option, at par plus accrued and unpaid interest, provided that the volume weighted average trading price of the Shares on the Toronto Stock Exchange during the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is not less than 125% of the Conversion Price. On and after December 31, 2030 and prior to the maturity date, Algoma may, at its option, redeem the Debentures, in whole or in part, from time to time at par plus accrued and unpaid interest.Algoma expects to use the net proceeds of the Public Offering and the Concurrent Private Placement to fund newbuild investments, mergers and acquisitions, and for general corporate purposes.The Public Offering and the Concurrent Private Placement are expected to close on or about November 4, 2026 and are subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. The closing of the Public Offering and the Concurrent Private Placement are contingent upon closing of the other.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.A preliminary short-form prospectus will be filed by October 23, 2026 with the securities regulatory authorities in all provinces of Canada in connection with the Public Offering. 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.Assuming the Concurrent Private Placement closes, E-L will acquire beneficial ownership of and control or direction over $20,000,000 principal amount of Debentures pursuant to the Concurrent Private Placement.Prior to the acquisition, E-L and other joint actors, beneficially owned or controlled 29,340,740 Shares. These Shares represented approximately 72.33% of Algoma’s issued and outstanding Shares on an undiluted basis.Assuming the Concurrent Private Placement closes, E-L and other joint actors will beneficially own or control $20,000,000 principal amount of Debentures, that could be convertible into 425,985 Shares, and 29,340,740 Shares for a total beneficial ownership of 29,766,725 Shares, representing approximately 72.61% of Algoma’s issued and outstanding Shares on a partially diluted basis, assuming conversion of E-L’s Debentures into Shares.This advertisement has not loaded yet, but your article continues below.On an as adjusted basis taking into account a previous share split undertaken by Algoma and assuming the Concurrent Private Placement closes, this would result in E-L and other joint actors having beneficially acquired more than 2% of the currently outstanding Shares of Algoma on a partially diluted basis since E-L’s previously filed early warning report and therefore triggering the requirement to make this disclosure.The Debentures were acquired by E-L for investment purposes. E-L and joint actors may acquire additional securities of Algoma or may sell securities of Algoma, in the future depending on market conditions, reformulation of plans and/or other relevant factors.This news release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires an early warning report to be filed under Algoma’s profile on SEDAR+ at www.sedarplus.ca containing additional information with respect to the foregoing matters. A copy of E-L’s early warning report will appear on Algoma’s issuer profile on SEDAR+ at www.sedarplus.ca.This advertisement has not loaded yet, but your article continues below.ALGOMA CENTRAL CORPORATIONAlgoma Central Corporation is a global provider of marine transportation, owning and operating dry and liquid bulk carriers that serve critical industries throughout the Great Lakes-St. Lawrence Region and internationally. Focused on delivering exceptional customer service, utilizing fuel efficient vessels, and advancing innovative technologies, Algoma drives productivity while contributing to economic growth, strengthening communities, and supporting its people. Algoma truly is Your Marine Carrier of Choice™. Learn more at www.algonet.com.FORWARD-LOOKING STATEMENTSCertain information included in this press release is forward-looking, within the meaning of applicable Canadian securities laws. Much of this information can be identified by looking for words such as “believe”, “expects”, “expected”, “will”, “intends”, “projects”, “anticipates”, “estimates”, “continues” or similar words. In particular, this press release includes forward- looking statements pertaining to the proposed timing of completion of the Public Offering and Concurrent Private Placement, the use of proceeds of the Public Offering and Concurrent Private Placement, and receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. Algoma believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward- looking statements should not be unduly relied upon.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, risks associated with the ability to satisfy regulatory and commercial closing conditions of the Public Offering and Concurrent Private Placement, the uncertainty associated with accessing capital markets and the risks related to Algoma’s business, including those identified in Algoma’s Annual Information Form for the fiscal year ended December 31, 2025 under the heading “Risks and Uncertainties to the Company”. Reference should be made to this additional information prior to making any investment decision. Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. Algoma assumes no obligation to revise or update forward looking statements to reflect new circumstances, except as required by law.FOR FURTHER INFORMATION PLEASE CONTACT:President and Chief Executive Officer905-687-7890Christopher A.L. Lazarz, CPA, CAChief Financial Officer905-687-7940This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.