Aecon greenshoe exercised, lifts convertible sale to $172.5 million

By Tali David

Minneapolis, Dec. 2 - Underwriters for Aecon Group Inc.'s offering of 5.5% convertible unsecured subordinated debentures due Dec. 31, 2018 exercised their over-allotment option in full, adding an additional C$22.5 million, or 600,000 units, according to a press release.

The company priced C$150 million of the five-year convertibles on a bought-deal basis on Nov. 7 at par to yield 5.5% with an initial conversion premium of 36%.

As previously reported, TD Securities Inc. and GMP Securities LP led the underwriters.

The Regulation S debentures are convertible into Aecon shares at C$20 per share and mature on 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.

Based in Toronto, Aecon is a construction and infrastructure development company.

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