Student Transportation to redeem convertibles due 2018 with new issue

By Wendy Van Sickle

Columbus, Ohio, July 27 – Student Transportation Inc. entered into a bought-deal transaction to issue C$85 million of 5.25% convertible unsecured subordinated debentures, which it will use to redeem its convertibles due 2018, according to a Wednesday news release.

The $60 million 6.25% convertibles to be redeemed are due June 30, 2018.

With current currency exchange rates, the company said the transaction will be roughly net debt neutral and it will realize a 100 basis point reduction in the interest rate, saving it about $600,000 in interest annually.

Student Transportation is a school bus transportation services company based in Barrie, Ont.

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