Boyd Closes Financing Deal
September 28, 2011
Boyd Income Fund, which owns Boyd Autobody and Glass, Gerber Collision
and Glass and Gerber National Glass Services, has closed a financing
deal that includes the previously
announced sale of 200,000 shares by Eddie Cheskis, chief executive
officer of Gerber's glass division.
The shares were sold as part of a bought deal financing with a
syndicate of underwriters led by Cormark Securities Inc. and CIBC
World Markets Inc., acting as co-leads and joint bookrunners, and
including National Bank Financial, and Octagon Capital Corp. The
underwriters purchased a total of 1,963,231 units, comprised of
1,300,000 trust units from the company's treasury; 463,231 units
being sold from entities under the control or direction of Terry
Smith, executive chairman of Boyd Group Income Fund; and the 200,000
units being sold by Cheskis at a price of $10.75 per unit. The units
were offered to the public by way of short form prospectus, according
to a statement from Boyd.
The underwriters also received the option, exercisable in whole
or in part at any time up to 30 days after the closing of the offering,
to purchase from treasury up to an additional 195,000 Units for
market stabilization purposes and to cover over-allotments, if any.
The net proceeds of deal will be used "to reduce debt levels
and position the Fund for future growth and development," according
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