Algoma Central Corporation Announces Exercise in Full of Over-Allotment Option in Connection with Recent Bought Deal Financing

Jun 27, 2017



St. Catharines, Ontario (June 27, 2017)Algoma Central Corporation ("Algoma" – is pleased to announce that the underwriters of the previously announced offering of $75,000,000 aggregate principal amount of 5.25% convertible unsecured subordinated debentures (the "Debentures") exercised in full their over-allotment option, resulting in the issuance of an additional $7,500,000 aggregate principal amount of Debentures (collectively, the "Offering"). The Debentures trade on the Toronto Stock Exchange under the symbol "ALC.DB.A".

The syndicate of underwriters was led by CIBC Capital Markets and included Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., GMP Securities L.P., Cormark Securities Inc. and Raymond James Ltd.

Algoma is using the net proceeds of the Offering to fund the redemption (the "Redemption") of its outstanding 6.00% convertible unsecured subordinated debentures due March 2018 (the "6.00% Debentures") and for general corporate purposes. The 6.00% Debentures are listed on the Toronto Stock Exchange under the symbol "ALC.DB". The aggregate principal amount of the 6.00% Debentures outstanding is $69,000,000.

A formal notice of redemption (the "Redemption Notice") has been provided to the holders of the 6.00% Debentures in accordance with the terms and conditions of the trust indenture governing the terms of the 6.00% Debentures. Pursuant to the Redemption Notice, Algoma will redeem the entre outstanding principal amount of the 6.00% Debentures on July 22, 2017 (the "Redemption Date"), plus accrued and unpaid interest thereon up to but excluding the Redemption Date. The total redemption price will be satisfied in cash.

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.


For further information please contact:

Ken Bloch Soerensen
President and Chief Executive Officer   
+1 905-687-7885

Peter D. Winkley, CPA, CA
Vice President, Finance and CFO
+1 905-687-7897