By Rebecca Melvin
New York, Sept. 15 - IBI Income Fund has priced C$40 million of five-year convertibles on a bought-deal basis at par to yield 7% with an initial conversion premium of 30%, according to a news release.
There is an over-allotment option to purchase up to an additional C$6 million of debentures.
The issue is being made via a syndicate of underwriters led by CIBC, National Bank Financial and TD Securities Inc.
Proceeds will be used for debt repayment and for general corporate purposes.
The debentures, which mature Dec. 31, 2014, are convertible into trust units of IBI Income at C$19.17 per trust unit.
Based in Toronto, IBI Income Fund holds an indirect 72% interest in IBI Group, a partnership which provides urban and transportation consulting services.
| Issuer: | IBI Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Joint lead managers: | CIBC, National Bank Financial, TD Securities Inc.
|
| Amount: | C$40 million
|
| Greenshoe: | C$6 million
|
| Maturity: | Dec. 31, 2014
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion premium: | 30%
|
| Conversion price: | C$19.17
|
| Conversion ratio: | 52.1648
|
| Pricing date: | Sept. 15
|
| Distribution: | Public offering
|
| Stock symbol: | TSX: IBI.UN
|
| Stock reference price: | C$14.74
|
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