TORONTO - Royal Plastics Group Ltd. plans a C$104.4 million (US$76.2 million) share issue in Canada and the United States to pay down debt. The Woodbridge, Ontario, vinyl building products company said March 7 it will issue 5 million subordinate voting shares from its treasury at C$21.75 (US$15.88) per share.
A syndicate led by Nesbitt Burns Inc. and Goldman Sachs Canada, both of Toronto, agreed to buy and resell the shares to the public. Royal expects to close the issue by March 25.
Royal said it will repay debt under its revolving credit line, which will remain unchanged at C$375 million (US$273.8 million).
Royal also announced March 11 a plan to seek a listing for its subordinate voting shares on the New York Stock Exchange under the symbol RYG. It expects to begin trading April 2, subject to regulatory approvals.
Royal Chairman Vic DeZen said at his firm's annual meeting Feb. 20 that the company would seek listing on a U.S. exchange in April. Royal's market capitalization currently is more than C$1.5 billion (US$1.1 billion).