Killam Properties plans C$50 million private placement of debentures, stock

By Sheri Kasprzak

Atlanta, April 18 - Killam Properties Inc. said it will raise C$50 million in a private placement of convertible unsecured subordinated debentures and common shares.

The debentures mature in seven years, bear interest at 6.5% annually and are convertible into common shares at C$3.10 each.

The common-share portion of the offering will be priced at a later time depending on market conditions, according to a statement from Killam. It will then be determined what portion of the proceeds will come from the convertible debentures.

Desjardins Securities Inc. is the placement agent in the deal.

Based in Halifax, N.S., Killam Properties owns and manages multifamily residential rental properties. The proceeds from the private placement will be used to acquire and manage a portfolio of residential rental properties in Canada. The remainder will be used for working capital.

The company's stock closed unchanged at C$2.56 on Friday.

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