By Rebecca Melvin
New York, May 17 - Student Transportation Inc. priced $60 million of seven-year convertible unsecured subordinated debentures on a bought-deal basis at par to yield 6.25%, according to a news release.
The syndicate for the debentures offering was led by Scotia Capital Inc. and National Bank Financial Inc., and included BMO Capital Markets, CIBC World Markets Inc., Raymond James Ltd. and Wellington West Capital Markets Inc.
The Regulation S debentures will be convertible at a rate of 105.2632 common shares per $1,000 principal amount of debentures, which is equal to a conversion price of $9.50 per common share (using a conversion rate of C$1 to $1.026).
The deal is expected to close June 7.
Proceeds will be used to repay debt and for general corporate purposes.
Student Transportation is a school bus transportation services company based in Barrie, Ont.
| Issuer: | Student Transportation Inc.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | $60 million
|
| Maturity: | June 30, 2018
|
| Underwriters: | Syndicate led by Scotia Capital Inc. and National Bank Financial Inc. and including BMO Capital Markets, CIBC World Markets Inc., Raymond James Ltd. and Wellington West Capital Markets Inc.
|
| Coupon: | 6.25%
|
| Price: | Par, $1,000
|
| Yield: | 6.25%
|
| Conversion price: | $9.50 per common share, using C$1 to $1.026 exchange rate
|
| Conversion ratio: | 105.2632
|
| Pricing date: | May 17
|
| Settlement date: | June 7
|
| Stock listing: | Toronto: STB
|
| Stock reference: | C$6.64
|
| Distribution: | Regulation S
|
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