By Abigail W. Adams
Portland, Me., Sept. 6 – Aecon Group Inc. priced C$160 million of five-year convertible unsecured subordinated debentures after the market close Thursday at par with a coupon of 5% and an initial conversion premium of 40%, according to a company news release.
TD Securities Inc. and CIBC Capital Markets co-led a syndicate of underwriters in the bought deal, which is being marketed by way of short form prospectus in all the provinces of Canada. The deal has a greenshoe of C$24 million.
The notes are non-callable until Dec. 31, 2021. They may be redeemed subject to a 125% hurdle from Dec. 31, 2021 to Dec. 31, 2022 when they become freely callable.
Aecon will have the right to repay the outstanding principal amount in shares subject to certain conditions, according to the press release.
Proceeds will be used to repay the outstanding principal amount of the company’s 5.5% convertible debentures due Dec. 31, 2018. Aecon will issue a notice of redemption following the closing of the new offering.
Aecon Group is a Toronto-based construction and infrastructure development company.
| Issuer: | Aecon Group Inc.
|
| Securities: | Convertible unsecured subordinated debentures
|
| Amount: | C$160 million
|
| Greenshoe: | C$24 million
|
| Maturity: | Dec. 31, 2023
|
| Bookrunners: | TD Securities Inc. and CIBC Capital Markets
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 40%
|
| Conversion price: | C$24
|
| Call options: | Non-callable until Dec. 31, 2021, subject to a 125% hurdle until Dec. 31, 2022 then freely callable
|
| Put options: | None
|
| Pricing date: | Sept. 6
|
| Settlement date: | Sept. 26
|
| Stock symbol: | TSX: ARE
|
| Stock price: | C$17.07 at market close Sept. 6
|
| Market capitalization: | C$1.02 billion
|
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