Deal sells units of one preferred and 6.25 warrants at $25.00 per unit
By Devika Patel
Knoxville, Tenn., Dec. 20 - Kingsway Financial Services Inc. said it will raise about $6.6 million in a private placement of units.
The company will sell about 262,876 units of one series 1 class A convertible preferred share and 6.25 warrants at $25.00 per unit.
The preferreds are convertible into 6.25 common shares at $4.00 per share, which is an 8.11% premium to the Dec. 19 closing share price of $3.70. The preferreds expire on April 1, 2021.
The warrants are exercisable at $5.00 after Sept. 16, 2016 and until Sept. 15, 2023. The strike price reflects a 35.14% premium to the Dec. 19 closing share price.
Settlement is expected Feb. 3.
Proceeds will be used to repay the remainder of the company's 7.50% senior notes, which are due in February.
Kingsway is a Toronto property and casualty insurance company.
| Issuer: | Kingsway Financial Services Inc.
|
| Issue: | Units of one series 1 class A convertible preferred share and 6.25 warrants
|
| Amount: | $6.6 million (approximate)
|
| Units: | 262,876 (approximate)
|
| Price: | $25.00
|
| Maturity: | April 1, 2021
|
| Conversion price: | $4.00
|
| Conversion ratio: | Into 6.25 common shares
|
| Conversion premium: | 8.11%
|
| Warrants: | 6.25 warrants per unit
|
| Warrant expiration: | Sept. 15, 2023
|
| Warrant strike price: | $5.00
|
| Pricing date: | Dec. 20
|
| Settlement date: | Feb. 3
|
| Stock symbol: | NYSE: KFS
|
| Stock price: | $3.70 at close Dec. 19
|
| Market capitalization: | $62.43 million
|
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