Enercare completes C$239.8 million bought deal financing

On March 30, 2016, Enercare Inc. (Enercare) announced that it completed its previously announced public offering of subscription receipts. The offering, which raised gross proceeds of approximately C$239.8 million, was underwritten on a bought deal basis by a syndicate of underwriters co-led by National Bank Financial Inc. and TD Securities Inc. and included RBC Dominion Securities Inc., Scotia Capital Inc., Desjardins Securities Inc. and Goldman Sachs Canada Inc. A total of 15,725,600 subscription receipts (which included 1,429,600 subscription receipts sold as a result of the exercise in full of the over-allotment option by the underwriters) were sold at a price of C$15.25 per subscription receipts.

The net proceeds from the offering will be used, in part, to finance Enercare Solutions, Inc.'s US$340.75 million acquisition of SEHAC Holdings Corporation (Service Experts), as well as any transaction-related costs and general working capital requirements. To finance the remainder of the acquisition, Enercare Solutions has entered into a commitment with its existing lenders, The Toronto-Dominion Bank and National Bank of Canada, pursuant to which the lenders committed to provide debt financing in the form of an unsecured 4-year variable rate term credit facility in an aggregate amount of US$210 million.

Enercare, headquartered in Toronto, is one of Canada's largest home and commercial services and energy solutions companies. It provides water heaters, furnaces, air conditioners and other HVAC rental products, plumbing services, protection plans and related services to more than 1.2 million customers.

Further information can be found on Stockhouse's website.