By Rebecca Melvin
New York, Oct. 5 - Student Transportation of America Ltd. priced C$45 million of convertible notes at par on a bought-deal basis to yield 7.5%, according to a news release.
The Regulation S issue was made via a syndicate of underwriters led by BMO Nesbitt Burns Inc., and including CIBC World Markets Inc., Scotia Capital Inc., Cormark Securities Inc., Wellington West Capital Markets Inc., National Bank Financial Inc. and Raymond James Ltd.
Proceeds will be used to fund the redemption of 14% subordinated notes, which are callable starting Dec. 21.
Repurchasing the notes will save almost C$2 million in interest payments on an annualized basis, the company said.
Based in Barrie, Ont., Student Transportation is a provider of school transportation services.
| Issuer: | Student Transportation of America Ltd.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Lead manager: | BMO Nesbitt Burns Inc.
|
| Amount: | C$45 million
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Pricing date: | Oct. 5
|
| Settlement date: | Oct. 26
|
| Distribution: | Regulation S, public offering
|
| Stock symbol: | TSX: STB
|
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