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Feb 12 (Reuters) - BFI Canada Ltd BFC.TO said it will sell about C$81 million ($65.22 million) in stock by way of a bought-deal financing, with proceeds to be used to pay down its debt, and forecast revenue growth in excess of 21 percent for fiscal 2008.
BFI Canada, formerly BFI Canada Income Fund, said it will sell 8.5 million common shares at a price of C$9.50 per share, a discount of more than 7 percent to Wednesday’s closing price.
“The net proceeds will be fully applied to the U.S. credit facility, removing the risk associated with the U.S. covenant adjustment which goes into effect on March 31, 2009,” CEO Keith Carrigan said in a statement.
The waste management company is the latest to join the ranks of other Canadian companies that have shored up their balance sheets by selling their stock at discounted prices.
The underwriters, co-led by TD Securities, RBC Capital Markets and CIBC World Markets, also have an option to buy up to an additional C$12 million in stock.
BFI Canada forecast revenue between C$1.11 billion and C$1.12 billion for the year ending Dec 31, 2008, an increase in excess of 21 percent over last year. Analysts on average expect the company to report revenue of C$1.11 billion for full year.
The company expects total EBITDA to be in the range of C$307.0 million to C$310.0 million, an increase of more than 11.4 percent year over year.
Shares of the company, which have lost more than 55 percent of their value in the past six months, were trading down 8 percent at C$9.45 Thursday on the Toronto Stock Exchange. ($1=1.242 Canadian Dollar) (Reporting by Chakradhar Adusumilli in Bangalore; Editing by Hezron Selvi)