Kingsway completes $78 million public offering

Kingsway Linked Return of Capital Trust (TSX:KSP.UN) has completed the public offering of $78 million of 5% Kingsway Linked Return of Capital Preferred Units (“LROC Preferred Units”) due June 30, 2015.
The offering was made through a syndicate of underwriters led by Scotia Capital Inc. and included CIBC World Markets Inc., Desjardins Securities Inc. and HSBC Securities (Canada) Inc.
The net proceeds of the offering will be used for investments including the purchase of an approximately $74.1 million 7.12% senior note due June 30, 2015 issued by a Kingsway affiliate. The proceeds from the sale of this note will be used for general corporate purposes, which will include the payment of a portion of the amounts outstanding under Kingsway’s $150 million revolving credit facility, which portion is estimated to be approximately $35 million.
Kingsway is a promoter of the offering. The LROC Preferred Units are listed on the TSX under the symbol KSP.UN.