K-Bro Linen closes $34.5M offering

K-Bro Linen Inc.



News Release

K-Bro Linen Inc. Announces Closing of $34,533,810 Equity Offering

Company Release – 12/12/2017 09:14

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

(TSX: KBL)

EDMONTON, Dec. 12, 2017 /CNW/ – K-Bro Linen Inc. (“K-Bro”) announced today the closing of its previously announced offering of 924,600 common shares of K-Bro (the “Shares”), which includes the exercise in full of an over-allotment option granted by K-Bro to the Underwriters, at a price of $37.35 per Share for gross proceeds of $34,533,810 (the “Offering”). The Offering was conducted on a bought deal basis by a syndicate of underwriters led by TD Securities Inc. and including Acumen Capital Finance Partners Limited, GMP Securities L.P., National Bank Financial Inc., Cormark Securities Inc., Laurentian Bank Securities Inc. and Echelon Wealth Partners Inc. (collectively, the “Underwriters”)

The net proceeds from the Offering will be used to partially pay down indebtedness that has been incurred under K-Bro’s amended $100 million senior secured revolving credit facility to fund the previously announced acquisition of Fishers Topco Ltd.

This press release is not an offer of securities for sale in the United States. The Shares being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.

CORPORATE PROFILE

K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently operates nine processing facilities and two distribution centres under three distinctive brands, including K-Bro Linen Systems Inc., Buanderie HMR and Les Buanderies Dextraze, in ten Canadian cities: Québec City, Montréal, Toronto, Regina, Saskatoon, Prince Albert, Edmonton, Calgary, Vancouver and Victoria.

Fishers was established in 1900 and is an operator of laundry and linen processing facilities in Scotland, providing linen rental, workwear hire and cleanroom garment services to the hospitality, healthcare, manufacturing and pharmaceutical sectors. Fishers’ client base includes major hotel chains and prestigious venues across Scotland and the North East of England. The company operates seven sites, including one depot, in Scotland and the North East of England with facilities in Cupar, Perth, Newcastle, Livingston, Inverness and Coatbridge.

Additional information regarding K-Bro including required securities filings are available on our website at www.k-brolinen.com and on the Canadian Securities Administrators’ website at www.sedar.com; the System for Electronic Document Analysis and Retrieval (“SEDAR”).

K-Bro est le plus important propriétaire et exploitant de buanderies au Canada. K‐Bro fournit une gamme étendue de services de buanderie aux établissements de soins de santé, hôtels et autres clients commerciaux. K‐Bro exploite actuellement neuf usines sous trois marques distinctives, incluant K‐Bro Linen Systems Inc., Buanderie HMR et Les Buanderies Dextraze, dans huit villes canadiennes: Québec, Montréal, Toronto, Edmonton, Calgary, Regina, Vancouver et Victoria.

SOURCE K-Bro Linen Inc.

Linda McCurdy, President & Chief Executive Officer; Kristie Plaquin, Chief Financial Officer, K-Bro Linen Inc. (TSX: KBL), Phone: 780.453.5218, Email: inquiries@k-brolinen.com, Web: www.k-brolinen.com