By Wendy Van Sickle
Columbus, Ohio, July 12 – Exchange Income Corp. will issue C$125 million of seven-year convertible subordinated debentures at par to yield 5.25% on a bought-deal basis, with an initial conversion premium of 23.5%, according to a company news release.
National Bank Financial Inc. and CIBC Capital Markets co-led the syndicate of underwriters for the bought deal, which carries a greenshoe of C$18.75 million.
Proceeds will be used to fund the redemption of the company’s C$69 million outstanding 5.25% convertible notes due 2023 and to repay indebtedness under the company’s credit facility.
Holders may convert the notes prior to their redemption at a conversion price of C$44.75 a share, according to the news release.
Exchange Income is a Winnipeg, Man.-based aerospace and aviation services and manufacturing company.
| Issuer: | Exchange Income Corp.
|
| Securities: | Convertible subordinated debentures
|
| Amount: | C$125 million
|
| Greenshoe: | C$18.75 million
|
| Maturity: | July 31, 2028
|
| Bookrunners: | National Bank Financial Inc., CIBC Capital Markets
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 23.5%
|
| Conversion price: | C$52.70
|
| Conversion rate: | 18.9753
|
| Pricing date: | July 12
|
| Settlement date: | July 30
|
| Stock symbol: | TSX: EIF
|
| Stock price: | C$40.38
|
| Market capitalization: | C$1.53 billion
|
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