By Rebecca Melvin
New York, Sept. 20 - Aecon Group Inc. sold C$80 million of five-year convertibles on a bought-deal basis at par to yield 6.25% with an initial conversion premium of about 59%, according to a news release.
There is an over-allotment option to purchase up to an additional C$12 million of debentures.
The offering is being made via a syndicate of underwriters co-led by GMP Securities LP, and TD Securities Inc., and including Raymond James Ltd., CIBC Paradigm Capital Inc., Macquarie Capital Markets Canada Ltd., BMO Capital Markets, Canaccord Genuity Corp., National Bank Financial Inc., Paradigm Capital Inc., and Scotia Capital Inc.
Proceeds will be used to help fund the remaining purchase price of its previously completed acquisition of Cow Harbour Construction Ltd. assets.
The debentures are convertible into units of Aecon at C$19.00 per share.
The debentures will be non-callable for three years, until Oct. 31, 2013, and then provisionally callable subject to a price hurdle of 125% until maturity. The offering is expected to close Oct. 8 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$80 million
|
| Greenshoe: | C$12 million
|
| Maturity: | Oct. 31, 2015
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 59%
|
| Conversion price: | C$19.00
|
| Calls: | Non callable until Oct. 31. 2013, then provisionally callable subject to a 125% price hurdle
|
| Pricing date: | Sept. 20
|
| Settlement date: | Oct. 8
|
| Distribution: | Public offering
|
| Stock symbol: | TSX: ARE
|
| Stock reference price: | C$11.95
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
