2016 Annual Report For Web 7.3MB

24. OBLIGATIONS UNDER FINANCE LEASE
INTEREST
RATE
%
MATURITY
DECEMBER
31, 2016
$
DECEMBER
31, 2015
$
CURRENT PORTION OF
OBLIGATIONS UNDER
FINANCE LEASE
Real estate lease Euribor +2 2018 206 209
Equipment leases 4.7-6.6 2020-2021 147 —
TOTAL CURRENT OBLIGATION
UNDER FINANCE LEASE
353 209
25. CONVERTIBLE UNSECURED SUBORDINATED
DEBENTURES
2016
$
2015
$
Principal amount 213,000 213,000
Equity component (9,922) (9,922)
Accretion 4,039 2,193
Financing fees, net of amortization (5,907) (7,686)
CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES 201,210 197,585
NON-CURRENT PORTION OF
OBLIGATIONS UNDER
FINANCE LEASE
Real estate lease Euribor +2 2018 904 1177
Equipment leases 4.7-6.6 2020-2021 475 —
TOTAL NON-CURRENT
OBLIGATIONS UNDER
1,379 1,177
FINANCE LEASE
OBLIGATIONS UNDER
FINANCE LEASE 1,732 1,386
[A] REAL ESTATE LEASE
The Company has a real estate lease that matures on March 1, 2018.
The lease is denominated in euros and bears interest at Euribor plus
2%.
[B] EQUIPMENT LEASE
The Company has leases for material handling and production
equipment that mature between 2020 and 2021. The leases are
denominated in U.S. dollars and Brazilian real and bear interest at rates
between 4.7% and 6.6%.
2013 DEBENTURES
In December 2013, the Company issued $86.3 million aggregate
principal amount of convertible unsecured subordinated debentures
[the “2013 Debentures”] at a price of $1,000 per 2013 Debenture.
The net proceeds of the offering, after payment of the underwriters’
fee of $3.5 million and expenses of the offering of $0.6 million, were
approximately $82.2 million. The 2013 Debentures bear interest at an
annual rate of 5.25% payable semi-annually on June 30 and December
31. The maturity date of the 2013 Debentures is December 31, 2018.
Each 2013 Debenture is convertible into common shares of the
Company at the option of the holder at any time on the earlier of the
maturity date and the date of redemption of the 2013 Debenture, at a
conversion price of $55.00 per common share being a conversion rate
of approximately 18.1818 common shares per $1,000 principal amount
of 2013 Debentures. No conversion options were exercised during the
year ended December 31, 2016 [year ended December 31, 2015 – nil]. As
at December 31, 2016, AGI has reserved 1,568,182 common shares for
issuance upon conversion of the 2013 Debentures.
The 2013 Debentures are not redeemable before December 31, 2016.
On and after December 31, 2016 and prior to December 31, 2017, the
2013 Debentures may be redeemed, in whole or in part, at the option
of the Company at a price equal to their principal amount plus accrued
and unpaid interest, provided that the volume weighted average trading
price of the common shares during the 20 consecutive trading days
ending on the fifth trading day preceding the date on which the notice
127 CONSOLIDATED FINANCIAL STATEMENTS
FIELD TO CONSUMER
2016 ANNUAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS 128