K-Bro Linen announces $50M bought deal

CPE News

Edmonton, AB (pcJ News Briefs) – K-Bro Linen Inc. (TSX: KBL) intends to close a bought deal of 1,320,000 common shares at $38.00 per share for gross proceeds of $50,160,000.

The offering will be made by a syndicate of underwriters led by TD Securities Inc.

Net proceeds will be used to fund the build out of K-Bro’s state-of-the-art facilities in Toronto and Vancouver, to pay down indebtedness and for general corporate purposes.

K-Bro Linen is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently operates nine processing facilities and two distribution centres under three distinctive brands, including K-Bro Linen Systems Inc., Buanderie HMR and Les Buanderies Dextraze, in ten Canadian cities: Québec City, Montréal, Toronto, Regina, Saskatoon, Prince Albert, Edmonton, Calgary, Vancouver and Victoria.

photo credit: K-Bro Linen