By Devika Patel
Knoxville, Tenn., Feb. 6 - K-Bro Linen Income Fund said it will raise C$17.5 million in a private placement of units.
The company intends to sell 1,362,000 units of the fund at C$12.85 per unit on a bought deal basis through a syndicate of underwriters.
The underwriting syndicate will be led by TD Securities Inc. and includes National Bank Financial Inc., Blackmont Capital Inc., Dundee Securities Corp., Cormark Securities Inc. and Canaccord Capital Corp.
The underwriters have a greenshoe for an additional 204,300 units, or C$2.63 million.
Proceeds will be used to fund the fund's previously announced acquisition of Buanderie H.M.R. Inc., to retrofit and equip its new Calgary facility, to repay debt, to pursue potential acquisition opportunities and for general corporate purposes.
Based in Edmonton, Alta., K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to large health care institutions, hotels and other commercial accounts.
| Issuer: | K-Bro Linen Income Fund
|
| Issue: | Units
|
| Amount: | C$17.5 million
|
| Greenshoe: | C$2,625,255
|
| Units: | 1,362,000
|
| Price: | C$12.85
|
| Warrants: | No
|
| Underwriters: | TD Securities Inc. (lead), National Bank Financial Inc., Blackmont Capital Inc., Dundee Securities Corp., Cormark Securities Inc., Canaccord Capital Corp.
|
| Pricing date: | Feb. 6
|
| Stock symbol: | Toronto: KBL.UN
|
| Stock price: | C$13.65 at close Feb. 5
|
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