By Rebecca Melvin
New York, Aug. 20 - Exchange Income Corp. has priced C$30 million of five-year convertible senior secured debentures on a bought-deal basis at par to yield 7.5% with an initial conversion premium of 16%, according to a news release.
There is an over-allotment option to purchase up to an additional C$4.5 million of debentures.
The issue was made via a syndicate of underwriters co-led by National Bank Financial Inc. and Wellington West Capital Inc.
The initial conversion price is C$14.50 per share.
Proceeds are expected to be used to reduce debt and for general corporate purposes.
The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange. They will be offered in each of the provinces of Canada other than the province of Quebec by way of a short form prospectus, and by private placement in the United States via Rule 144A.
Winnipeg, Man.-based Exchange Income is an open-ended, limited-purpose trust focused on opportunities in the industrial products and transportation sectors.
| Issuer: | Exchange Income Corp.
|
| Issue: | Convertible senior secured debentures
|
| Amount: | C$30 million
|
| Greenshoe: | C$4.5 million
|
| Maturity: | Sept. 30, 2014
|
| Bookrunners: | National Bank Financial Inc. and Wellington West Capital Inc.
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion premium: | 16%
|
| Conversion price: | C$14.50
|
| Conversion ratio: | 68.966 shares
|
| Pricing date: | Aug. 20
|
| Settlement date: | Sept. 11
|
| Distribution: | Short from prospectus in Canada, Rule 144A in the United States
|
| Stock listing: | Toronto: EIF
|
| Stock reference: | C$12.50
|
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