Diversified Royalty raises additional $9M in offering

Executive Summary

• Diversified Royalty Corp. closed the over‑allotment option, adding $9 million to its previously completed $60 million bought‑deal offering of 5.75% convertible unsecured subordinated debentures, bringing total gross proceeds to $69 million.
• Net proceeds will be used to repay debt under the company’s acquisition facility, finance additions to royalty pools of partner companies, and support working capital/general corporate purposes, thereby increasing borrowing capacity for future acquisitions.
• The debentures trade on the Toronto Stock Exchange under the symbol DIV.DB.B.

Key Details

• Original offering: $60 million aggregate principal amount of 5.75% convertible unsecured subordinated debentures at $1,000 per debenture.
• Over‑allotment exercised in full: additional $9 million aggregate principal amount at the same price ($1,000 per debenture).
• Total gross proceeds after over‑allotment: $69 million.
• Syndicate co‑led by CIBC Capital Markets (sole bookrunner) and Desjardins Securities Inc.; other participants included Canaccord Genuity Corp., National Bank Financial Inc., Scotia Capital Inc., ATB Capital Markets Corp., BMO Nesbitt Burns Inc., iA Private Wealth Inc., and Raymond James Ltd.
• Use of proceeds:
• Repayment of outstanding amounts under the acquisition facility.
• Financing expected additions to royalty pools of certain royalty partners.
• Working capital and general corporate purposes.
• Repayment of acquisition‑facility debt will increase available drawdown capacity for future acquisitions.
• Trading symbol on TSX: DIV.DB.B.

Notable Quotes

(No executive quotes were provided in the release.)