Published on 3/6/2019 in the Prospect News Convertibles Daily.
New Issue: Exchange Income prices C$75 million seven-year convertibles to yield 5.75%, up 45%
By Abigail W. Adams
Portland, Me., March 6 – Exchange Income Corp. priced C$75 million of seven-year convertible unsecured subordinated debentures after the market close on Wednesday at par to yield 5.75% with an initial conversion premium of 45%, according to a company news release.
National Bank Financial Inc., CIBC Capital Markets and Laurentian Bank Securities Inc. co-led the syndicate of underwriters for the bought deal, which carries a greenshoe of C$11.25 million.
Raymond James Ltd., RBC Capital Markets, Scotiabank, TD Securities Inc., BMO Capital Markets, Canaccord Genuity Corp., Wellington-Altus Private Wealth Inc., AltaCorp Capital Inc., Cormark Securities Inc., Industrial Alliance Securities and Macquarie Capital Markets Canada Ltd. are also underwriters.
Proceeds will be used to fund the redemption of the company’s 6% convertible notes due 2021.
Holders may convert the notes prior to their redemption at a conversion price of $31.70 a share, according to the news release.
Exchange Income is a Winnipeg, Man.-based aerospace and aviation services and manufacturing company.
| Issuer: | Exchange Income Corp.
|
| Securities: | Convertible unsecured subordinated debentures
|
| Amount: | C$75 million
|
| Greenshoe: | C$11.25
|
| Maturity: | March 31, 2026
|
| Bookrunners: | National Bank Financial Inc., CIBC Capital Markets, Laurentian Bank Securities Inc., Raymond James Ltd., RBC Capital Markets, Scotiabank, TD Securities Inc., BMO Capital Markets, Canaccord Genuity Corp., Wellington-Altus Private Wealth Inc., AltaCorp Capital Inc., Cormark Securities Inc., Industrial Alliance Securities and Macquarie Capital Markets Canada Ltd.
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Yield: | 5.75%
|
| Conversion premium: | 45%
|
| Conversion price: | C$49
|
| Conversion rate: | 20.4082
|
| Pricing date: | March 6
|
| Settlement date: | March 26
|
| Stock symbol: | TSX: EIF
|
| Stock price: | C$33.73
|
| Market capitalization: | C$1.07 billion
|
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