Killam greenshoe exercised, lifts convertibles to C$57.5 million

By Melissa Kory

Cleveland, Nov. 30 - Killam Properties Inc.'s underwriters exercised their C$7.5 million over-allotment option in full, lifting its offering of 5.65% convertible debentures due Nov. 30, 2017 to C$57.5 million.

Killam priced C$50 million of the seven-year convertibles in a bought deal at par to yield 5.65% with an initial conversion premium of 31% on Nov. 8.

The deal was completed via a syndicate of underwriters led by RBC Capital Markets and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., Beacon Securities Ltd., Desjardins Securities Inc., Dundee Securities Corp., Macquarie Capital Markets Canada Ltd., Brookfield Financial Corp., M Partners Inc. and Raymond James Ltd.

Killam intends to use the proceeds to redeem its outstanding 6.5% convertible debentures on Dec. 13, to fund future property acquisitions and development activities, to repay debt and for general corporate purposes.

Killam is a real estate company based in Halifax, N.S.

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