By Rebecca Melvin
New York, Sept. 3 – Stuart Olson Inc. priced C$60 million of five-year convertible debentures in a bought deal at par to yield 6% with an initial conversion premium of 35%, according to a news release.
The Regulation S deal has a C$9 million greenshoe and was bought by a syndicate of underwriters co-led by TD Securities Inc. and CIBC.
The debentures are non-callable until Dec. 31, 2017 and then are provisionally callable until Dec. 31, 2018, if shares rise to 125% of the conversion price. After Dec. 31, 2018, the debentures are freely callable. They mature Dec. 31, 2019.
The securities are being priced under a preliminary short-form prospectus in Canadian provinces except Quebec.
Proceeds will be used to refinance at maturity a portion of the 6% convertibles due June 30, 2015, and in the interim, to repay the balance of debt under its revolving credit facility. Remaining proceeds will be maintained as cash on hand.
Calgary, Alta.-based Stuart Olson provides building construction, commercial and industrial electrical contracting services.
| Issuer: | Stuart Olson Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$60 million
|
| Greenshoe: | C$9 million
|
| Maturity: | Dec. 31, 2019
|
| Underwriters: | Co-led by TD Securities Inc. and CIBC
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 35%
|
| Conversion price: | C$14.15
|
| Calls: | Non-callable until Dec. 31, 2017, then provisionally callable until Dec. 31, 2018 if shares exceed 125% of conversion price
|
| Pricing date: | Sept. 3
|
| Settlement date: | Sept. 19
|
| Stock symbol: | Toronto: SOX
|
| Stock reference price: | C$10.46 as of close Sept. 3
|
| Distribution: | Regulation S, public offering in Canadian provinces except Quebec
|
| Market capitalization: | C$260.68 million
|
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