By Rebecca Melvin
New York, March 5 - Exchange Income Corp. priced C$60 million of convertible senior secured debentures on a bought-deal basis at par to yield 5.35% with an initial conversion premium of 45%, according to a company news release.
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. and CIBC World Markets Inc., and included Laurentian Bank Securities Inc., Raymond James Ltd., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., PI Financial Corp. and Stonecap Securities Inc.
There is a greenshoe of C$9 million of debentures to cover over-allotments.
The debentures have a conversion price of C$41.60 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 March 25.
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$60 million
|
| Greenshoe: | C$9 million
|
| Maturity: | March 31, 2020
|
| Underwriters: | Syndicate co-led by National Bank Financial Inc. and CIBC World Markets Inc., and including Laurentian Bank Securities Inc., Raymond James Ltd., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., PI Financial Corp. and Stonecap Securities Inc.
|
| Coupon: | 5.35%
|
| Price: | Par of C$1,000
|
| Yield: | 5.35%
|
| Conversion premium: | 45%
|
| Conversion price: | C$41.60 per share
|
| Conversion ratio: | 24.0385
|
| Pricing date: | March 5
|
| Settlement date: | March 25
|
| Stock symbol: | Toronto: EIF
|
| Stock reference price: | C$28.81 as of March 5 close
|
| VWAP: | C$28.72 as of March 5 close
|
| Distribution: | Rule 144A, public short form prospectus in Canada
|
| Market capitalization: | C$595.3 million
|
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