Diversified Royalty greenshoe ups 5.25% convertibles to C$57.5 million

By Susanna Moon

Chicago, Nov. 7 – Diversified Royalty Corp. said underwriters fully exercised the C$7.5 million over-allotment option on its 5.25% convertible subordinated debentures due Dec. 31, 2022.

This brings the total deal size to C$57.5 million, according to a company notice.

As announced Oct. 17, Diversified priced C$50 million of the 5.25% convertibles at par with an initial conversion price of C$4.55 per share.

The conversion price is a 41.3% premium over the Oct. 16 closing share price of C$3.22.

The syndicate of underwriters is led by CIBC Capital Markets.

The company previously said it intends to use proceeds from the private placement for general corporate purposes, including funding potential future acquisitions and working capital.

Diversified Royalty acquires royalties from businesses and franchisors in North America. The company is based in Vancouver, B.C.

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