By Abigail W. Adams
Portland, Me., Feb. 28 – North American Construction Group Ltd. priced C$55 million of seven-year convertible debentures after the market close on Thursday at par with a coupon of 5% and an initial conversion premium of 51.61%, according to a company news release.
National Bank Financial Inc. was lead underwriter for the bought deal, which carries a greenshoe of C$8.25 million.
The deal will be distributed via short form prospectus in all provinces in Canada except Quebec.
The debentures are non-callable.
Proceeds will be used for future growth opportunities, to repay debt and for general corporate purposes, according to the news release.
North American Construction is an Acheson, Alta.-based heavy construction and mining company.
| Issuer: | North American Construction Group Ltd.
|
| Securities: | Convertible subordinated debentures
|
| Amount: | C$55 million
|
| Greenshoe: | C$8.25 million
|
| Maturity: | March 31, 2026
|
| Bookrunner: | National Bank Financial Inc.
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 51.61%
|
| Conversion price: | C$26.25
|
| Call options: | None
|
| Pricing date: | Feb. 28
|
| Settlement date: | March 20
|
| Stock symbol: | TSE: NOA
|
| Stock price: | C$17.34 at market close Feb. 28
|
| Market capitalization: | C$473.94 million
|
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