5N Plus redeems all 5.75% convertible debentures

Engineered materials and specialty chemicals producer 5N Plus Inc of Montreal, Quebec, Canada has exercised its right to redeem all of its 5.75% convertible unsecured subordinated debentures maturing on 30 June.

On 28 March, 5N Plus will redeem debentures worth CA$26m, when it will pay the holders a redemption price equal to the principal amount of the debentures, plus accrued and unpaid interest up to but excluding the redemption date, for a total of CA$1,013.71 per CA$1000 worth of debentures. Following the repayment, no outstanding debentures will remain. 5N Plus intends to use available funds to pay the redemption price.

5N Plus provides purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, and also produces related II-VI semiconducting compounds such as cadmium telluride (CdTe), cadmium sulphide (CdS) and indium antimonide (InSb) as precursors for the growth of crystals for solar, LED and eco-friendly materials applications.

Also, in recent years 5N Plus has expanded its portfolio of specialty semiconductors to include wafer-level products based on the III-V and II-VI families of materials. These address several growth markets, including medical imaging, sensing, security, surveillance and renewable energy in both space and terrestrial applications. Last year, the firm announced that it would double the capacity of its semiconductor plant in Montreal to keep pace with growing market demands.

“In recent years, the company has transformed its balance sheet, investing with focus and discipline in projects to support its ongoing transition towards higher-added-value products, a transformation requiring flexible means of financing,” says chief financial officer Richard Perron. “The company intends to use the proceeds from the recently raised unsecured term loan for the repayment of the balance of the unsecured convertible debentures issued by the company in 2014. The new long-term financing poses no dilution potential for our shareholders,” he adds. “As we continue to transform our company and deliver tangible value, we will continue to manage our debt structure diligently to fund internal and external strategic initiatives.”

See related item:

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5N Plus shareholders approve reduction in stated capital

5N Plus secures new US$25m unsecured term loan

5N Plus doubles production capacity in semiconductor engineered materials

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