By Rebecca Melvin
New York, Sept. 8 - Aecon Group Inc. has priced C$150 million of five-year convertibles on a bought-deal basis at par to yield 7% with an initial conversion premium of about 70%, according to a news release.
There is an over-allotment option to purchase up to an additional C$22.5 million of debentures.
The issue is being made via a syndicate of underwriters co-led by GMP Securities LP, TD Securities Inc. and including Raymond James Ltd., CIBC Paradigm Capital Inc., National Bank Financial Inc., Genuity Capital Markets and Macquarie Capital Markets Canada Ltd.
Proceeds will be used for general corporate purposes, including working capital investment in new projects, and to further improve liquidity to support project surety capacity.
The debentures, which mature Sept. 30, 2014, are convertible into units of Aecon at C$19.00 per share.
The debentures will be non-callable until Sept. 30, 2012, and then provisionally callable at a price hurdle of 125% until maturity. The offering is expected to close Sept. 29 and is subject to normal regulatory approvals.
Based in Toronto, Aecon is a construction and infrastructure development company.
| Issuer: | Aecon Group Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Joint lead managers: | GMP Securities LP and TD Securities Inc. (co-leads)
|
| Amount: | C$150 million
|
| Greenshoe: | C$22.5 million
|
| Maturity: | Sept. 30, 2014
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion premium: | 70%
|
| Conversion price: | C$19.00
|
| Pricing date: | Sept. 8
|
| Settlement date: | Sept. 29
|
| Distribution: | Public offering
|
| Stock symbol: | TSX: ARE
|
| Stock reference price: | C$11.16
|
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