WesternOne increases 6.25% convertible debentures to C$45 million

By Jennifer Chiou and Rebecca Melvin

New York, March 14 - WesternOne Inc. announced that it has increased the size of its bought-deal offering of 7.25-year convertible debentures to C$45 million from C$40 million due to strong investor demand.

As previously reported, the convertibles priced at par to yield 6.25% with an initial conversion premium of 31%.

According to a news release, the Regulation S offering was bought by a syndicate of underwriters co-led by Dundee Securities Ltd. and Scotiabank and including Canaccord Genuity Corp., National Bank Financial Inc., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., M Partners Inc. and Sora Group Wealth Advisors Inc.

The debentures mature June 30, 2020 and are convertible at the holder's option at a conversion price of C$11.75 per share.

The convertibles are non-callable until June 30, 2016 and then are provisionally callable until June 30, 2018 if the company's share price exceeds 125% of the conversion price.

There is an over-allotment option of C$6 million.

Proceeds will be used to pay down existing credit facilities and for general corporate purposes, including working capital.

The debentures will be offered in all provinces of Canada (except Quebec) by way of a short form prospectus. Closing on April 4 is subject to regulatory approvals, including approval of the Toronto Stock Exchange.

Vancouver, B.C.-based WesternOne acquires and grows businesses in the construction and infrastructure services sectors.

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