By Rebecca Melvin
New York, May 12 - Killam Properties Inc. priced C$40 million of seven-year convertible debentures in a bought deal on Wednesday at par to yield 5.45% with an initial conversion premium of 35%, according to a news release.
There is an over-allotment option for up to an additional C$6 million of debentures.
The deal was completed via a syndicate of underwriters led by RBC Capital Markets.
The debentures are convertible at a share price of C$14.60.
Killam intends to use the proceeds to fund future property acquisitions, including partially funding a recently announced six-building apartment portfolio, and development activities, to repay debt and for general corporate purposes.
The paper is being distributed under a short form prospectus in each of the provinces of Canada, excluding Quebec. Closing of the offering is expected to take place on June 2.
Killam is a real estate company based in Halifax, N.S.
| Issuer: | Killam Properties Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$40 million
|
| Greenshoe: | C$6 million
|
| Maturity: | June 30, 2018
|
| Bookrunners: | Syndicate led via RBC Capital Markets
|
| Coupon: | 5.45%
|
| Price: | Par
|
| Yield: | 5.45%
|
| Conversion premium: | 35%
|
| Conversion price: | C$14.60
|
| Pricing date: | May 11
|
| Settlement date: | June 2
|
| Stock symbol: | Toronto: KMP
|
| Stock price: | C$10.80 at close May 11
|
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