Convertible Debentures
On September 2, 2004, PrimeWest issued 7.5% (Series I) and 7.75% (Series II)
Debentures for proceeds of $150 million and $100 million respectively. The
proceeds were used, in part, to fund the Calpine acquisition that closed on
September 2, 2004.
The Series I Debentures pay interest semi-annually on March 31 and September 30
and have a maturity date of September 30, 2009. The Series I Debentures are
convertible at the option of the holder at a conversion price of $26.50 per
Trust Unit. PrimeWest has the option to redeem the Series I Debentures at a
price of $1,050 per Series I Debenture after September 30, 2007 and on or before
September 30, 2008, and at a price of $1,025 per Series I Debenture after
September 30, 2008 and before maturity. On redemption or maturity the Trust may
elect to satisfy its obligation to repay the principal by issuing Trust Units.
The Series II Debentures pay interest semi-annually on June 30 and December 30
and have a maturity date of December 31, 2011. The Series II Debentures are
convertible at the option of the holder at conversion price of $26.50 per Trust
Unit. PrimeWest has the option to redeem the Series II Debentures at a price of
$1,050 per Series II Debenture after December 31, 2007 and on or before December
31, 2008, at a price of $1,025 per Debenture after December 31, 2008 and on or
before December 31, 2009 and after December 31, 2009 and before maturity at
$1,000 per Series II Debenture. On redemption or maturity the Trust may elect to
satisfy its obligations to repay the principal by issuing Trust Units.
The Series III Debentures pay interest semi-annually on July 31 and January 31
and have a maturity date of January 31, 2012. The Series III Debentures
are convertible at the option of the holder at a conversion price of $26.25 per
Trust Unit. PrimeWest has the option to redeem the Series III Debentures
at a price of $1,050 per Series III Debenture on or after February 1, 2010 and
on or before January 31, 2011 and at a price of $1,025 per Series III Debenture
on or after February 1, 2011 and before Maturity, plus accrued and unpaid
interest. On redemption or maturity the Trust may elect to satisfy its
obligation to repay the principal by issuing Trust Units.
Term Sheets for each of the Debenture issues can be viewed by clicking on the
links below: