By Marisa Wong
Morgantown, W.Va., Oct. 17 – Diversified Royalty Corp. priced C$50 million of 5.25% convertible subordinated debentures due Dec. 31, 2022 at par with an initial conversion price of C$4.55 per share.
The conversion price is a 41.3% premium over the Oct. 16 closing share price of C$3.22.
The bought deal offering includes a 30-day over-allotment option for up to C$7.5 million of additional debentures, according to a news release
The syndicate of underwriters is led by CIBC Capital Markets.
The company said it intends to use proceeds from the private placement for general corporate purposes, including funding potential future acquisitions and working capital.
Closing is expected to occur on Nov. 7.
Diversified Royalty acquires royalties from businesses and franchisors in North America. The company is based in Vancouver, B.C.
| Issuer: | Diversified Royalty Corp.
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$50 million
|
| Greenshoe: | C$7.5 million
|
| Maturity: | Dec. 31, 2022
|
| Underwriter: | CIBC Capital Markets (lead)
|
| Coupon: | 5.25%
|
| Price: | Par of C$1,000
|
| Yield: | 5.25%
|
| Conversion premium: | 41.3%
|
| Conversion price: | C$4.55
|
| Call option: | Non-callable on or before Dec. 31, 2020; after Dec. 31, 2020 and prior to Dec. 31, 2021, in whole or in part if volume weighted average trading price during 20 consecutive trading days ending on fifth trading day preceding redemption notice date is at least 125% of conversion price; on or after Dec. 31, 2021, in whole or in part at par plus accrued interest
|
| Announcement date: | Oct. 17
|
| Settlement date: | Nov. 7
|
| Stock symbol: | Toronto: DIV
|
| Stock price: | C$3.22 at close on Oct. 16
|
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