By Rebecca Melvin
New York, Nov. 7 - Aecon Group Inc. priced C$150 million of five-year convertible debentures on a bought-deal basis on Thursday at par to yield 5.5% with an initial conversion premium of 36%, according to a news release.
The offering, which has an over-allotment option for up to C$22.5 million of additional debentures, was made via a syndicate of underwriters led by TD Securities Inc. and GMP Securities LP.
The Regulation S debentures are convertible into Aecon shares at C$20.00 per share and mature Dec.31, 2018.
The securities are non-callable until Dec. 31, 2016 and then are provisionally callable subject to a price hurdle of 125% until Dec. 31, 2017. After that, they are freely convertible.
Proceeds will be used to refinance Aecon's 7% convertible unsecured subordinated debentures due Sept. 30, 2014 and for general corporate purposes.
Distribution is via short form prospectus in all Canadian provinces. Settlement is expected Nov. 27.
Based in Toronto, Aecon is a construction and infrastructure development company.
| Issuer: | Aecon Group Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$150 million
|
| Greenshoe: | C$22.5 million
|
| Maturity: | Dec. 31, 2018
|
| Bookrunners: | TD Securities Inc., GMP Securities LP
|
| Coupon: | 5.5%
|
| Price: | Par, C$1,000
|
| Yield: | 5.5%
|
| Conversion premium: | 36%
|
| Conversion price: | C$20.00
|
| Calls: | Non-callable until Dec. 31. 2016, then provisionally callable subject to a 125% price hurdle until Dec. 31, 2017
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 27
|
| Distribution: | Public offering in Canada, Regulation S
|
| Stock symbol: | Toronto: ARE
|
| Stock reference price: | C$14.75
|
| Market capitalization: | C$823.97 million
|
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