By Stephanie N. Rotondo
Seattle, Feb. 22 – North American Energy Partners Inc. inked a C$40 million bought deal of 5.5% convertible unsecured subordinated debentures due March 31, 2024 with a syndicate led by National Bank Financial Inc. and Canaccord Genuity Corp., the company said in a press release on Wednesday.
There is a C$6 million over-allotment option.
The debentures are convertible into common stock at a price of C$10.85 per share, representing a conversion rate of 92.1659 shares per each C$1,000 of notes.
The conversion price came at a 50% premium to Wednesday’s closing share price of C$7.23.
The issue is redeemable on or after March 31, 2020 at par plus accrued interest, assuming the volume weighted average price of the company’s stock hits a 125% price hurdle during a 20 consecutive day period.
On or after March 31, 2022, the convertibles are redeemable at any time.
Proceeds will be used for future growth opportunities and for general corporate purposes.
North American Energy is an Edmonton, Alta.-based provider of heavy construction and mining services in Canada.
| Issuer: | North American Energy Partners Inc.
|
| Securities: | Convertible unsecured subordinated debentures
|
| Amount: | C$40 million
|
| Greenshoe: | C$6 million
|
| Maturity: | March 31, 2024
|
| Bookrunners: | National Bank Financial Inc., Canaccord Genuity Corp.
|
| Coupon: | 5.5%
|
| Price: | Par of C$1,000
|
| Yield: | 5.5%
|
| Conversion premium: | 50%
|
| Conversion rate: | 92.1659 shares
|
| Conversion price: | C$10.85 per share
|
| Provisional call: | On or after March 31, 2020 if the stock hits a 125% price hurdle
|
| Call options: | On or after March 31, 2022 at par plus accrued interest
|
| Pricing date: | Feb. 22
|
| Settlement date: | March 15
|
| Stock symbol: | TSX: NOA
|
| Stock price: | C$7.23 as of Feb. 22 close
|
| Market capitalization: | C$198.84 million
|
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