By Rebecca Melvin
New York, April 8 - IBI Income Fund priced C$20 million of seven-year convertible unsecured subordinated debentures on a bought-deal basis at par to yield 5.75% with an initial conversion premium of 35%, according to a news release.
The Regulation S issue was made via a syndicate of underwriters led by TD Securities Inc. and CIBC. There is a C$2 million over-allotment option.
The debentures will be convertible at a conversion rate of 48.7329 IBI units per C$1,000 principal amount of debentures, which is equal to a conversion price of C$20.52 per unit.
The debentures will mature on June 30, 2017.
Proceeds will be used for general corporate purposes, including contemplated acquisitions.
Based in Toronto, IBI holds an indirect 72% interest in IBI Group, which provides professional services for areas of development including urban land development.
| Issuer: | IBI Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$20 million
|
| Greenshoe: | C$2 million
|
| Maturity: | June 30, 2017
|
| Underwriters: | Syndicate led by TD Securities and CIBC
|
| Coupon: | 5.75%
|
| Price: | Par, C$1,000
|
| Yield: | 5.75%
|
| Conversion premium: | 35%
|
| Conversion price: | C$20.52 per unit
|
| Pricing date: | April 8
|
| Stock listing: | Toronto: IBG.UN
|
| Distribution: | Regulation S
|
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