By Sheri Kasprzak
Atlanta, March 4 - Aecon Group Inc. said it plans to raise C$32.5 million in a private placement of five-year unsecured subordinated convertible debentures.
The debentures mature March 17, 2010 and bear interest at 8.25% annually. The debentures are convertible into common shares at C$7.60 each.
The company may redeem the debentures after March 18, 2008 at par plus accrued and unpaid interest, provided that the weighted average trading price of the company's shares is not less than 125% of the conversion price during a specified period before redemption.
Hochtief Canada Inc., the company's largest shareholder, has agreed to not sell or monetize any of its securities for 60 days after the deal closes.
The offering is being placed through a syndicate of underwriters led by GMP Securities Ltd. and including Paradigm Capital Inc. and Canaccord Capital Corp. It is expected to close March 17.
The deal was originally announced as a C$25 million offering.
Based in Toronto, Aecon is a construction and infrastructure development company. It plans to use the proceeds to replace traditional bank debt with a less-restrictive facility.
| Issuer: | Aecon Group Inc.
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| Issue: | Unsecured subordinated convertible debentures
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| Amount: | C$32.5 million
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| Maturity: | March 17, 2010
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| Coupon: | 8.25%
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| Price: | Par
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| Yield: | 8.25%
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| Conversion price: | C$7.60
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| Call: | Redeemable at par plus interest after March 18, 2008
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| Warrants: | No
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| Underwriters: | GMP Securities Ltd. (lead); Paradigm Capital Inc.; Canaccord Capital Corp.
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| Pricing date: | March 4
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| Settlement date: | March 17
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| Stock price: | C$6.40 at close March 4
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