Morneau Shepell completes $86M bought deal debenture offering

Morneau Shepell Inc. (the Company) (TSX:MSI) completed a public offering, on a bought deal basis, of $75 million aggregate principal amount of 4.75 per cent convertible unsecured subordinated debentures of the Company due June 30, 2021.

The offering was underwritten by a syndicate of underwriters co-led by National Bank Financial Inc. and TD Securities Inc. and included CIBC World Markets Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc. and GMP Securities L.P.

On June 8, 2016, the underwriters exercised their over-allotment option in full and purchased an additional $11 million convertible unsecured subordinated debentures on the same terms and conditions increasing the total gross proceeds of the offering to $86 million.

The net proceeds from the offering were used to initially repay indebtedness under the Company’s revolving credit facility, which were then available to be drawn, as required, to fund the redemption of the Company’s 5.75-per-cent convertible unsecured subordinated debentures on June 13, 2016, and for general corporate purposes, including future acquisitions.

Morneau Shepell is the leading provider of employee and family assistance programs, as well as the largest administrator of retirement and benefits plans and the largest provider of integrated absence management solutions in Canada.

Morneau Shepell was represented in-house by Susan Marsh, General Counsel and Corporate Secretary, and by 

Goodmans LLP with the team that included Tim Heeney, Brenda Gosselin and Emily Weizel (corporate/securities) and Ken Saddington (tax).

The underwriters were represented by a team from Torys LLP. The Torys team included Kevin Morris, Laura Sigurdson and Brett Saulnier (corporate/securities) and Andrew Wong (tax).