Aecon greenshoe exercised, raising convertibles to C$172.5 million

By Marisa Wong

Milwaukee, Sept. 29 – Aecon Group Inc. announced that the syndicate of underwriters for its recent offering of convertible unsecured subordinated debentures exercised the C$22.5 million over-allotment option in full, increasing the offering to C$172.5 million. The C$172.5 million sale was completed Tuesday, according to a press release.

The convertible debentures were issued on a bought deal basis to a syndicate of underwriters co-led by GMP Securities LP and TD Securities Inc. and including Raymond James Ltd., CIBC, Paradigm Capital Inc., BMO Capital Markets, Canaccord Capital Corp., National Bank Financial Inc., Genuity Capital Markets and Macquarie Capital Markets Canada Ltd.

Aecon originally priced C$150 million of five-year convertibles on Sept. 8 to yield 7% with an initial conversion premium of about 70%. The debentures, which mature Sept. 30, 2014, are convertible into units of Aecon at C$19.00 per share, as previously reported.

Aecon intends to use the net proceeds of the offering for general corporate purposes, including working capital investment in new project opportunities, and to further improve its liquidity.

Aecon is a Toronto construction and infrastructure company.

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