New York, April 21 - Killam Properties Inc. fixed terms on its previously announced C$57.5 private placement.
The Halifax, N.S., company will sell C$42.2 million of convertible unsecured subordinated debentures and six million shares of common stock at C$2.55 per share.
The convertibles pay a coupon of 6.5% and convert at C$3.10 per share.
Desjardins Securities Inc. is lead placement agent and the syndicate also includes TD Securities Inc., Canaccord Capital Corp., Acadian Securities Inc. and Beacon Securities Ltd.
Proceeds will be used to acquire and manage a portfolio of residential rental properties in Canada. The remainder will be used for working capital.
The deal was originally announced at C$50 million.
| Issuer: | Killam Properties Inc.
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| Amount: | C$57.5 million
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| Pricing date: | April 21
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| Stock price: | C$2.70
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| Placement agent: | Desjardins Securities Inc. (lead), TD Securities Inc., Canaccord Capital Corp., Acadian Securities Inc., Beacon Securities Ltd.
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|
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| Convertible notes
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| Issue: | Convertible unsecured subordinated debentures
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| Amount: | C$42.2 million
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| Maturity: | 7 years
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| Coupon: | 6.5%
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| Price: | Par
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| Yield: | 6.5%
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| Conversion price: | C$3.10
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|
|
| Stock
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| Amount: | C$15.3 million
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| Shares: | 6 million
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| Price: | C$2.55
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