Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Oakville, Ont.-based Concordia Healthcare Corp. (CXR-T;CXRX-Q) said it has finalized the structure of its financing for the acquisition of Amdipharm Mercury Ltd. and its post acquisition capital structure. The company said it has fully committed debt financing of about $2.8-billion (U.S.). This debt financing will consist of term loans of about $1.865-million and senior unsecured notes/loans of up to $790-million, with maturities of six and seven years respectively.
The balance of the financing required will consist of an unsecured bridge loan of up to $180-million, which, under the terms of an amended commitment letter, will have a maturity date of two years. Following closing of the acquisition, Concordia's total debt, including both new debt and existing senior notes of $735-million, will have a maximum blended interest rate of about 7.25 per cent.
The $2.835-billion of debt financing and gross proceeds of $520-million raised from Concordi'a recent public equity offering, along with cash on hand, will be used to fund the purchase price for AMCo, refinance certain Concordia and AMCo debt, and complete the acquisition, which is scheduled to close Oct. 21, the company said.
"With this financing structure now finalized, Concordia confirms that as expected it will be in compliance with its existing bond covenants, including covenants relating to senior secured debt/EBITDA and fixed charge coverage ratios," the company said.
Under terms of the agreement, Carlisle shareholders will receive: 0.0942 of an Alamos common share for each Carlisle common share held -- a value of about 60 cents per Carlisle share -- plus 0.0942 of a warrant to purchase Alamos common shares at an exercise price of $10 within three years from closing. Alamos will be issuing about 5.4-million shares as part of the deal, about 2 per cent of its current shares outstanding.
Alamos currently owns 10.9-million shares of Carlisle, representing about 19.9-per-cent stake in Carlisle. Carlisle's primary asset is the Lynn Lake gold project in Lynn Lake, Manitoba.
"The Lynn Lake project represents an attractive, low-risk growth opportunity as a high grade, open pit project located in one of the best mining jurisdictions in the world. Given its potential for strong economics, the structure of the existing earn-in agreement and our commitment to advancing Lynn Lake, we are pleased to be able to consolidate our ownership of the project through our acquisition of Carlisle. This is a win for shareholders on both sides," said John McCluskey, president and CEO of Alamos.
Vancouver-based Fortuna Silver Mines Inc. (FVI-T;FSM-N) said that in the third quarter it produced 1.7-million ounces of silver, down 4 per cent from a year ago, and 10,963 ounces of gold, up 12 per cent from a year ago from its two mines in Latin America, the San Jose Mine in Mexico and the Caylloma Mine in Peru. Silver and gold production for the first nine months totalled 5-million ounces of silver and 29,734 ounces of gold.
"We continue on target to meet our annual consolidated production guidance. The expansion of our San Jose Mine continues on schedule for commissioning in mid-2016," said Jorge Ganoza, president and CEO of Fortuna.
Perth, Australia-based Paladin Energy Ltd. (PDN-T) said that in the third quarter ended Sept. 30, it had uranium sales of 800,000 pounds at an average selling price of $46.12 (U.S.) per pound, versus an average spot price of $36.48. The company also reaffirmed its annual guidance with expecting each subsequent quarter of fiscal year 2016 to be cash flow positive at current spot uranium prices and foreign exchange rates.
Calgary-based Cequence Energy Ltd. (CQE-T) announces that it is putting itself up for sale as its board launches a formal process "to explore strategic alternatives with a view to enhancing shareholder value. Such strategic alternatives may include, but are not limited to, a corporate sale, merger or other business combination, a sale of a material portion of Cequence's assets, a joint venture, farm-in or farm-out or other transaction," the company said. It has hired Peters & Co. Ltd. as a financial adviser for the review.
Sports equipment maker Performance Sports Group Ltd. (PSG-T;PSG-N) reported revenues of $175-million (U.S.) for its first fiscal quarter ended Aug. 31, down 11 per cent from a year ago. The net loss totalled $4.4-million, or 10 cents per share, compared to net income of $10.8-million, or 24 cents per share, a year ago. Adjusted EBITDA was $16.7-million, down 58 per cent.
"As we anticipated, product launch timing in our hockey and baseball/softball businesses along with foreign currency exchange rates affected our first quarter financial results," said Kevin Davis, CEO of Performance Sports Group. "We estimate the strengthened U.S. dollar lowered our first quarter Adjusted EPS by approximately 60 per cent or 21 cents compared to the prior year. Despite the ongoing impact of currency on our reported results, we continue to see solid growth across our brands, including continued market share gains in the recently completed back-to-hockey season, which runs from April through September."