Diversified Royalty Corp. Announces Increase to Previously Announced Public Offering of 5.75% Convertible Unsecured Subordinated Debentures to $60 Million

Core Viewpoint - Diversified Royalty Corp. has revised its agreement with underwriters to increase the offering of convertible unsecured subordinated debentures to $60 million due to strong demand [1] Group 1: Offering Details - The offering consists of 5.75% convertible unsecured subordinated debentures priced at $1,000 each, with a total principal amount of $60 million [1] - An Over-Allotment Option allows underwriters to purchase an additional $9 million of debentures for market stabilization purposes within 30 days of the offering's closing [2] - The debentures will mature on March 31, 2031, and will bear interest at an annual rate of 5.75%, payable semi-annually starting September 30, 2026 [3] Group 2: Redemption and Conversion Terms - The debentures are not redeemable before March 31, 2029, and can be redeemed after that date under certain conditions related to the trading price of common shares [4] - Holders can convert the debentures into common shares at a conversion price of $5.35 per share, subject to adjustments [3] Group 3: Use of Proceeds - Net proceeds from the offering will be used to repay outstanding amounts under the acquisition facility, fund additions to royalty pools, and for working capital and general corporate purposes [5] Group 4: Company Overview - Diversified Royalty Corp. is a multi-royalty corporation focused on acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America [9] - The company currently owns several brands, including Mr. Lube + Tires, Sutton, and AIR MILES®, among others [10] - The objective of the company is to increase cash flow per share through accretive royalty purchases and to maintain a stable monthly dividend for shareholders [11]