By Rebecca Melvin
New York, Dec. 14 - Exchange Income Corp. priced C$35 million of five-year convertible debentures on a bought-deal basis to yield 5.75% with an initial conversion premium of 49%, according to a news release.
The deal was made by a syndicate of underwriters co-led by National Bank Financial Inc. and TD Securities Inc. and including CIBC World Markets Inc., Wellington West Capital Inc., Raymond James Ltd., Laurentian Bank Securities Inc. and PI Financial Corp.
It is being distributed by way of a public offering in Canada except for Quebec and through Rule 144A in the United States.
There is an over-allotment option to purchase up to an additional C$5.25 million of debentures.
The debentures, which mature Jan. 31, 2016, will be convertible at the holder's option at C$26 per share.
Proceeds will be used to reduce debt and for general corporate purposes.
Closing of the offering is expected to take place by Jan. 11.
Winnipeg, Man.-based Exchange Income is an open-ended, limited-purpose trust focused on the industrial products and transportation sectors.
| Issuer: | Exchange Income Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$35 million
|
| Greenshoe: | C$5.25 million
|
| Maturity: | Jan. 31, 2016
|
| Underwriters: | National Bank Financial and TD Securities (co-leads), CIBC World Markets, Wellington West Capital, Raymond James, Laurentian Bank Securities and PI Financial
|
| Coupon: | 5.75%
|
| Price: | Par of C$1,000
|
| Yield: | 5.75%
|
| Conversion premium: | 49%
|
| Conversion rate: | 38.4615
|
| Conversion price: | C$26.00 per share
|
| Pricing date: | Dec. 14
|
| Settlement date: | Jan. 11
|
| Stock symbol: | Toronto: EIF
|
| Stock reference price: | C$17.40 as of Dec. 14 close
|
| Distribution: | Rule 144A, short form prospectus in Canada
|
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