Stuart Olson lifts 6% convertibles to C$70 million, ups greenshoe

By Marisa Wong

Madison, Wis., Sept. 4 – Stuart Olson Inc. said it increased its previously announced bought deal financing to C$70 million. The company had priced C$60 million of five-year convertible debentures at par to yield 6% with an initial conversion premium of 35% on Wednesday.

The 30-day over-allotment option was also increased to C$10.5 million from C$9 million.

The syndicate of underwriters for the Regulation S deal is co-led by TD Securities Inc. and CIBC and includes RBC Capital Markets, Raymond James Ltd., Canaccord Genuity Corp., Dundee Securities Ltd., National Bank Financial Inc., Scotiabank, HSBC Securities (Canada) Inc. and Paradigm Capital Inc.

As noted before, the debentures are non-callable until Dec. 31, 2017 and then are provisionally callable until Dec. 31, 2018, if shares rise to 125% of the conversion price. After Dec. 31, 2018, the debentures are freely callable. They mature Dec. 31, 2019.

The securities are being offered under a preliminary short-form prospectus in Canadian provinces except Quebec.

Proceeds will be used to refinance at maturity a portion of the 6% convertibles due June 30, 2015 and, in the interim, to repay the balance of debt under its revolving credit facility. Remaining proceeds will be maintained as cash on hand.

The offering is scheduled to close Sept. 19.

Based in Calgary, Alta., Stuart Olson provides building construction, commercial and industrial electrical contracting, earthmoving and industrial insulation services.

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