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(TSX:ALC)
ST. CATHARINES, ON, June 21, 2017 /CNW/ - Algoma Central
Corporation ("Algoma" – www.algonet.com) is pleased to
announce the closing of its previously announced offering of $75,000,000 aggregate principal amount
of 5.25% convertible unsecured subordinated debentures (the "Debentures") at a price of $1,000 per
Debenture on a bought deal basis to a syndicate of underwriters led by CIBC Capital Markets, and including Scotia Capital Inc.,
TD Securities Inc., National Bank Financial Inc., GMP Securities L.P., Cormark Securities Inc. and Raymond James Ltd.
(collectively, the "Underwriters"). Algoma has also granted the Underwriters an over-allotment option to purchase up to an
additional $7,500,000 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.
The Debentures will trade on the Toronto Stock Exchange under the symbol "ALC.DB.A".
The Debentures will mature on June 30, 2024 and bear interest at an annual rate of 5.25% payable
semi-annually in arrears on June 30 and December 31 in each year,
commencing December 31, 2017. 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 June 30,
2024 and the business day immediately preceding the date specified by Algoma for redemption of the Debentures. The
conversion price will be $21.15 per Share, subject to adjustment in certain circumstances. Holders
converting their Debentures will receive accrued and unpaid interest thereon to, but excluding, the date of conversion.
Algoma intends to use the net proceeds of the Offering to fund the redemption of its outstanding 6.00% convertible unsecured
subordinated debentures due March 2018 (the "Existing Debentures") and for general corporate
purposes. Formal notice of Algoma's intention to redeem the Existing Debentures will be delivered as soon as is practicable to
the registered holders thereof in accordance with the terms and conditions of the trust indenture governing the Existing
Debentures.
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.
About Algoma Central
Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers on the Great Lakes - St.
Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry bulk carriers and product tankers. Algoma also owns
ocean self-unloading vessels operating in international markets. Algoma provides ship management services for other ship owners.
The Company is expanding into global dry-bulk markets with investments in businesses specializing in pneumatic cement carrying
vessels and in short-sea dry-bulk shipping.
SOURCE Algoma Central Corporation
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