By Sheri Kasprzak
New York, March 15 - K-Bro Linen Income Fund said it arranged a C$15,012,000 private placement as part of its acquisition of Premier Linen Supply Ltd.
The offering includes 1.08 million limited partnership units at C$13.90 each.
The deal is slated to close March 31 and the proceeds will be used to fund the acquisition, which is expected to cost $8 million.
The proceeds not used for the acquisition will be used for the company's C$6.4 million strategic capital expenditure program.
TD Securities Inc. is the placement agent for the deal.
Premier, the acquisition target, provides linen services to hotels and restaurants. The acquisition is expected to close March 31.
K-Bro, based in Edmonton, Alta., provides laundry and linen processing facilities to health care institutions, hotels and other clients in Canada.
| Issuer: | K-Bro Linen Income Fund
|
| Issue: | Limited partnership units
|
| Amount: | C$15,012,000
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| Units: | 1.08 million
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| Price: | C$13.90
|
| Warrants: | No
|
| Placement agent: | TD Securities Inc.
|
| Pricing date: | March 15
|
| Settlement date: | March 31
|
| Stock symbol: | Toronto: KBL
|
| Stock price: | C$14.45 at close March 15
|
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