Boyd Group Income Fund, parent company to Glass America, Gerber Collision & Glass and others, has closed its previously announced $100 million CAD bought deal financing consisting of 1,181,000 trust units at a price of $42.35 CAD per unit and $50 million CAD aggregate principal amount of 5.25 percent convertible unsecured subordinated debentures due October 31, 2021.
The offering was led by National Bank Financial Inc. and Cormark Securities Inc., acting as co-leads and joint book runners, and included CIBC World Markets Inc., GMP Securities L.P., Laurentian Bank Securities Inc., Scotia Capital Inc. and Octagon Capital Corp.
Concurrently with the closing, the underwriters exercised their over-allotment option in full in respect of the debentures (representing an additional aggregate principal amount of $7.5 million) and partially exercised their over-allotment option in respect of the units acquiring an additional 125,000 units at the offering price of the total 177,150 units available, which increased the amount of gross proceeds realized under the offering to $112.8 million CAD, according to officials.
The debentures have a maturity date of October 31, 2021 and are convertible at the option of the holder into units at a conversion price of $61.40 CAD per unit. The debentures are listed for trading on the Toronto Stock Exchange under the symbol “BYD.DB.A.”
The majority of the net proceeds of the offering is intended to be used by Boyd to repay bank indebtedness under its revolving credit facility as well as to fund acquisitions and for general corporate purposes, allowing Boyd to further strengthen its balance sheet and position it to execute on its growth strategy into the future.
Concurrently with the offering and in a separate transaction, Eddie Cheskis, CEO of Glass America LLC, completed the sale of 200,000 units on an underwritten block trade basis at a price of $42.35 CAD per unit for gross proceeds of $8.5 million. Upon completion of this transaction, Cheskis will continue to hold 218,053 units in the Fund.
The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements.