Diversified Royalty Corp. Announces Closing of $60 Million Bought Deal Offering of 5.75% Convertible Unsecured Subordinated Debentures

Core Viewpoint - Diversified Royalty Corp. has successfully closed a public offering of $60 million in convertible unsecured subordinated debentures, which will be used for debt repayment, funding royalty pool additions, and general corporate purposes [1][3]. Group 1: Offering Details - The offering consisted of $60 million aggregate principal amount of 5.75% convertible unsecured subordinated debentures priced at $1,000 each [1]. - A syndicate of underwriters, led by CIBC Capital Markets and Desjardins Securities Inc., conducted the offering, with an option for an additional $9 million in debentures for over-allotments [2]. - The debentures will trade on the Toronto Stock Exchange under the symbol "DIV.DB.B" [6]. Group 2: Financial Terms - The debentures mature on March 31, 2031, with a 5.75% annual interest rate payable semi-annually starting September 30, 2026 [4]. - The conversion price for the debentures into common shares is set at $5.35, subject to adjustments [4]. - The first interest payment will be approximately $36.74 per $1,000 principal amount of debentures [5]. Group 3: Use of Proceeds - Net proceeds from the offering will be allocated to repay outstanding amounts under the acquisition facility, which will increase available funds for future acquisitions [3]. - The funds will also support expected additions to the royalty pools of certain royalty partners and be used for working capital and general corporate purposes [3]. 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 [8]. - The company aims to increase cash flow per share through accretive royalty purchases and intends to maintain a stable monthly dividend for shareholders [11].