By Rebecca Melvin
New York, Sept. 23 – Stuart Olson Inc. said it has closed on its previously announced C$70 million of five-year convertible debentures, according to a news release on Monday.
The company also said it is redeeming an existing issue of C$80.5 million of 6% convertible debentures that mature Dec. 31. The older notes will be repaid Oct. 23.
The new debentures were priced at par to yield 7%.
They are non-callable for four years.
The proceeds together with other sources including its revolving credit facility will be used to redeem and repay the 6% convertibles.
CIBC Capital Markets acted as agent in connection with the placement.
Calgary, Alta.-based Stuart Olson provides building construction, commercial and industrial electrical contracting services.
| Issuer: | Stuart Olson Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$70 million
|
| Maturity: | Sept. 23, 2024
|
| Placement agent: | CIBC Capital Markets
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | C$4.87
|
| Conversion rate: | 205.3388
|
| Calls: | Non-callable for four years
|
| Pricing date: | Aug. 7
|
| Settlement date: | Sept. 23
|
| Stock symbol: | Toronto: SOX
|
| Stock reference price: | C$3.32 as of close Aug. 7
|
| Market capitalization: | C$90.40 million
|
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