Algoma Central Corporation Announces Closing of Convertible Debenture Financing

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESST. CATHARINES, Ontario--(BUSINESS WIRE)--Algoma Central Corporation (“Algoma”) (TSX:ALC) is pleased to announce that it has closed its previously announced offering of $70,000,000 aggregate principal amount of 6.20% convertible unsecured subordinated debentures (the “Debentures”) at a price of $1,000 per Debenture (the “Public Offering”). The Offering was conducted on a bought deal basis pursuant to the terms and conditions of an underwriting agreement among Algoma and CIBC World Markets Inc., Scotia Capital Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Desjardins Securities Inc., National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., Raymond James Ltd., ATB Capital Markets Corp. and Paradigm Capital Inc. (collectively, the “Underwriters”). Algoma has also granted the Underwriters an over-allotment option to purchase up to an additional $10,500,000 aggregate principal amount of Debentures at the same price exercisable in whole or in part at any time for a period of 30 days following closing. The Public Offering was completed pursuant to a short form prospectus of Algoma dated October 30, 2026 (the “Prospectus”) filed with the securities commissions in each of the provinces of Canada. A copy of the Prospectus is available on Algoma’s SEDAR+ profile at www.sedarplus.ca. The Debentures will trade on the Toronto Stock Exchange (the “TSX”) under the symbol ALC.DB.B. The Debentures will mature on December 31, 2031 and will bear interest at an annual rate of 6.20% payable semi-annually on June 30 and December 31 of each year, commencing June 30, 2027. At the holder's option, the Debentures may be converted into common shares of Algoma (“Shares”) at any time prior to the close of business on the earlier of December 31, 2031 and the business day immediately preceding the date specified by Algoma for redemption of the Debentures. The conversion price will be $46.95 per Share (the “Conversion Price”), subject to adjustment in certain circumstances. The Debentures will not be redeemable before December 31, 2029. On and after December 31, 2029 and prior to December 31, 2030, the Debentures may be redeemed in whole or in part from time to time at Algoma’s option, at par plus accrued and unpaid interest, provided that the volume weighted average trading price of the Shares on the TSX during the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is not less than 125% of the Conversion Price. On and after December 31, 2030 and prior to the maturity date, Algoma may, at its option, redeem the Debentures, in whole or in part, from time to time at par plus accrued and unpaid interest. Algoma is also pleased to announce the concurrent closing, on a non-brokered private placement basis, of the previously announced issuance of $20,000,000 aggregate principal amount of Debentures to E-L Financial Corporation (“E-L”) on the same terms as the Public Offering (the “Concurrent Private Placement”). The securities issued pursuant to the Concurrent Private Placement are subject to a statutory hold period of four months and one day from the date of closing. E-L’s participation in the Concurrent Private Placement, as an insider of Algoma, and the participation of certain directors and officers in the Public Offering, each constitute a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Algoma has relied on the exemption from the formal valuation requirements contained under section 5.5(a) of MI 61-101 and the exemption from the minority shareholder approval requirements contained in section 5.7(1)(a), as neither the fair market value of the Debentures to be issued to E-L under the Concurrent Private Placement or the consideration to be paid by such insider will exceed 25% of Algoma’s market capitalization. Algoma intends to use the net proceeds of the Public Offering and Concurrent Private Placement, after deducting Underwriters’ fees and expenses of Algoma, to fund newbuild investment, mergers and acquisitions and for general corporate purposes. ALGOMA CENTRAL CORPORATION Algoma Central Corporation is a global provider of marine transportation, owning and operating dry and liquid bulk carriers that serve critical industries throughout the Great Lakes-St. Lawrence Region and internationally. Focused on delivering exceptional customer service, utilizing fuel efficient vessels, and advancing innovative technologies, Algoma drives productivity while contributing to economic growth, strengthening communities, and supporting its people. Algoma truly is Your Marine Carrier of Choice™. Learn more at www.algonet.com. FORWARD-LOOKING STATEMENTSRead the full story here

Algoma Central Corporation Announces Closing of Convertible Debenture Financing

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