Constellation Software Inc. will grant shareholders of record at the close of business on Thursday, Aug. 21, 2014, rights to purchase up to $100-million aggregate principal amount of unsecured subordinated floating-rate debentures, according to the Toronto Stock Exchange. The TSX reports the company will issue one right for each share held on the record date. If exercised on or before Sept. 22, 2014, 21.192 rights will entitle the holder to buy $100 of principal amount of debentures for $95. If exercised after Sept. 22, 2014, 21.192 rights will entitle the holder to buy $100 of principal amount of debentures for $95.9934. The company's shares will start trading ex rights at the open on Tuesday, Aug. 19, 2014, at which time the rights will be listed for trading on a when-issued basis. The debentures will pay interest at 7.4 per cent per year to March 31, 2015. From and including March 31, 2015, the interest rate will be reset on an annual basis on March 31 of each year at a rate equal to the annual average percentage change in the all-item consumer price index during the 12-month period ending on Dec. 31 in the prior year (plus or minus) plus 6.5 per cent. The rights will expire at 4:30 p.m. (Toronto time) on Nov. 7, 2014.

The company plans to use the money raised from the offering to pay down a portion of its credit facility. For more information on the terms of the debentures, see the company's final short form prospectus dated Aug. 7, 2014, or its news release of Aug. 8, 2014.

The rights will trade under the symbol CSU.RT and Cusip No. 21037X 11 8.