Pinetree Capital Announces Renewal Of Normal Course Issuer Bid For Convertible Debentures
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TORONTO, Ontario (May 16, 2013) – Pinetree Capital Ltd. (TSX: “PNP”) (“Pinetree”) announces the renewal of the company’s normal course issuer bid (the “Bid”) for its 8% convertible unsecured subordinated debentures due May 31, 2016 (“Debentures”) (TSX: “PNP.DB”). Under the terms of the Bid, which will commence on May 21, 2013 and end on May 20, 2014, the company can purchase up to $6,696,000 principal amount of Debentures, representing 10% of the “public float” of the Debentures that were outstanding on May 13, 2013.
Purchases of Debentures under the Bid can be made through the facilities of the TSX and on other alternative Canadian trading systems, up to a maximum of $16,602 principal amount per day (subject to the company’s ability to rely upon the “block purchase exception” under the TSX rules), representing 25% of the average daily trading volume of $66,409 principal amount for the past six months. All purchases will be made at market prices and otherwise in accordance with the rules of the TSX, and all Debentures purchased under the Bid will be cancelled.
Pinetree believes that in view of recent trading prices of the Debentures, and depending upon prices from time to time throughout the duration of the Bid, the purchase (for cancellation) of Debentures may represent an attractive use of funds to reduce the company’s ongoing interest expense and reduce the overall debt outstanding at below issue cost, thereby contributing to the enhancement of shareholder value.
As at May 13, 2013, an aggregate of $67,560,000 principal amount of Debentures were outstanding. During the previous twelve months, Pinetree purchased an aggregate of $7,440,000 principal amount of Debentures under its current normal course issuer bid, at a volume weighted average price of $79.81 per $100 principal amount of Debentures. The current bid expires on May 17, 2013.
Pinetree has also established an automatic securities purchase plan with its broker, which will allow for purchases of Debentures under the Bid at all times, including periods when the company would ordinarily be precluded from doing so due to regulatory restrictions or internal trading blackout periods (such periods, “Blackout Periods”). The plan provides standing instructions to the broker regarding the parameters within which purchases can be made under the Bid during Blackout Periods, without involving the exercise of the company’s/management’s discretion, and will terminate upon the earlier of: (a) the date upon which Pinetree has acquired the maximum amount of Debentures permitted under the Bid; (b) the expiry of the Bid; and (c) the date upon which the plan may otherwise be terminated by the company in accordance with its terms.
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