Storagevault arranges $50-million debenture offering

Executive Summary

• Storagevault Canada Inc. has entered into an agreement for a $50 million bought deal offering of 5.60% Senior Unsecured Hybrid Debentures due December 31, 2030.
• The offering includes a 30-day option for the underwriters to purchase an additional $7.5 million in debentures under the same terms.
• Net proceeds are intended to initially pay down bank debt, which may be redrawn to redeem existing 5.75% debentures due January 31, 2026, finance future acquisitions, and for general corporate purposes.

Key Details

• Offering Size: $50 million aggregate principal amount of listed senior unsecured hybrid debentures.
• Underwriters: Syndicate led by CIBC Capital Markets and Bank of Nova Scotia as joint bookrunners.
• Over-Allotment Option: Option to purchase up to an additional $7.5 million aggregate principal amount of debentures, exercisable in whole or in part for 30 days following closing.
• Price: $1,000 per debenture.
• Interest Rate: 5.60% per annum, payable semi-annually in arrears on June 30 and December 31.
• First Interest Payment: June 30, 2026 (includes accrued interest from closing to June 30, 2026).
• Maturity Date: December 31, 2030.
• Use of Proceeds: Initially to pay down bank debt; subsequently to potentially redraw bank debt to finance redemption of 5.75% listed debentures due Jan. 31, 2026, finance potential future acquisitions, and for general corporate purposes.
• Ranking: Direct senior unsecured obligations, subordinate to senior secured indebtedness, pari passu with other unsubordinated indebtedness, and structurally subordinated to subsidiaries' obligations.
• Redemption Terms:
  • Not redeemable before December 31, 2028.
  • On/after first call date (Dec 31, 2028) and prior to Dec 31, 2029: Redeemable at 102.8% of principal plus accrued interest.
  • On/after Dec 31, 2029 and prior to maturity: Redeemable at par plus accrued interest.
  • Notice period: 30 to 60 days prior to redemption.
• Closing Date: Expected on or about November 28, 2025.
• Regulatory: Subject to customary approvals, including Toronto Stock Exchange; preliminary short form prospectus to be filed with Canadian securities regulatory authorities.