By Rebecca Melvin
New York, April 14 - Exchange Income Corp. priced an upsized C$50 million of seven-year convertible senior secured debentures on a bought-deal basis at par to yield 6.25% with an initial conversion premium of 40%, according to a news release.
The deal was initially going to be C$40 million in size.
The convertibles, distributed by way of a short-form prospectus in Canada and under Rule 144A in the United States, were "bought" by a syndicate of underwriters co-led by National Bank Financial Inc., TD Securities Inc. and Wellington West Capital Inc.
The greenshoe was upsized to C$7.5 million from C$6 million.
The debentures have a conversion price of about C$30.60 per common share.
Proceeds from the offering will be used to pay down debt and for general corporate purposes.
Closing of the offering, which is subject to normal regulatory approvals, is expected to occur May 4.
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 senior secured debentures
|
| Amount: | C$50 million, upsized from C$40 million
|
| Greenshoe: | C$7.5 million, C$6 million
|
| Maturity: | May 31, 2018
|
| Underwriters: | National Bank Financial Inc., TD Securities Inc. and Wellington West Capital Inc.
|
| Coupon: | 6.25%
|
| Price: | Par of C$1,000
|
| Yield: | 6.25%
|
| Conversion premium: | 40%
|
| Conversion price: | C$30.60 per share
|
| Conversion ratio: | 32.680
|
| Pricing date: | April 14
|
| Settlement date: | May 4
|
| Stock symbol: | Toronto: EIF
|
| Stock reference price: | C$21.82 as of April 14 close
|
| Distribution: | Rule 144A, short form prospectus in provinces of Canada other than Quebec
|
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