K-Bro Linen completes $57.7M bought deal

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By CPE News

Edmonton, AB (pcJ News Briefs) – K-Bro Linen Inc. (TSX: KBL) has completed previously announced bought deal of 1,518,000 common shares, which includes the exercise in full of an over-allotment option, at a price of $38.00 per share for gross proceeds of $57,684,000.

The offering was made by a syndicate of underwriters led by TD Securities Inc. and including Acumen Capital Finance Partners Limited, GMP Securities L.P., Laurentian Bank Securities Inc., Cormark Securities Inc., National Bank Financial Inc. and Echelon Wealth Partners Inc.

Stikeman Elliott LLP and Goodmans LLP acted as legal counsel to K-Bro and the underwriters respectively.

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