By Rebecca Melvin
New York, April 12 - Exchange Income Fund priced C$30 million of seven-year convertible secured debentures on a bought-deal basis at par to yield 6.5% with an initial conversion premium of 29%, according to a news release.
There is a greenshoe of C$4.5 million for the issue made via a syndicate of underwriters co-led by National Bank Financial Inc. and CIBC World Markets Inc. and including TD Securities Inc., Wellington West Capital Inc. and Raymond James Ltd.
The offering is being made under a short-form prospectus in the provinces of Canada other than Quebec and by way of Rule 144A in the United States.
The debentures will be convertible at a conversion rate of 50 Exchange Income shares per C$1,000 principal amount of debentures, which is equal to a conversion price of C$20.00 per share.
The debentures will mature on May 31, 2017.
Proceeds will be used to reduce debt and for general corporate purposes.
Based in Winnipeg, Manitoba, Exchange Income holds interests in aviation and specialty manufacturing companies, and is focused on acquisitions in industrial products and transportation..
| Issuer: | Exchange Income Fund
|
| Issue: | Convertible secured debentures
|
| Amount: | C$30 million
|
| Greenshoe: | C$4.5 million
|
| Maturity: | May 31, 2017
|
| Underwriters: | Syndicate co-led by National Bank Financial and CIBC World Markets
|
| Coupon: | 6.5%
|
| Price: | Par of C$1,000
|
| Yield: | 6.5%
|
| Conversion premium: | 29%
|
| Conversion price: | C$20.00 per share
|
| Pricing date: | April 12
|
| Closing: | April 30
|
| Stock listing: | Toronto: EIF
|
| Stock reference price: | C$15.48
|
| Distribution: | Short-form prospectus in Canada, Rule 144A in the U.S.
|
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