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Aecon announces completion of previously disclosed public offering of convertible debentures

Sep 29, 2009
Exercise of over-allotment brings total gross proceeds to $172,500,000


Toronto, Ontario – September 29, 2009: Aecon Group Inc. (TSX: ARE) today announced that it has completed the previously announced issuance of convertible unsecured subordinated debentures on a bought deal basis to a syndicate of underwriters co-led by GMP Securities L.P.. and TD Securities Inc., and including Raymond James Ltd., CIBC World Markets Inc., Paradigm Capital Inc., BMO Capital Markets, Canaccord Capital Corporation, National Bank Financial Inc., Genuity Capital Markets and Macquarie Capital Markets Canada Ltd.   As a result of the exercise on closing of the over-allotment option granted to underwriters, the total gross proceeds of the offering were $172,500,000. 

Aecon intends to use the net proceeds of the offering for general corporate purposes, including working capital investment in new project opportunities, and to further improve its liquidity in support of the surety capacity that may be required for these projects.

“The amount of work in Aecon’s bidding pipeline is as strong as it has been in many years,” said Scott Balfour, President and CFO, Aecon Group Inc. “Having this flexible and cost effective financing in place will help to ensure that we are in a position to continue to capitalize on the significant project opportunities before us.”

The convertible debentures are direct, unsecured obligations of Aecon which mature on September 30, 2014 and accrue interest at the rate of 7.0% per annum payable semi-annually.  At the holder’s option, the convertible debentures may be converted into common shares in the capital of Aecon Group Inc. at any time up to the maturity date at a conversion price of $19.00 per share, subject to adjustment in certain circumstances.   From September 30, 2012 through the maturity date, Aecon may, at its option, redeem the convertible debentures, in whole or in part, at par plus accrued and unpaid interest provided that the weighted average trading price of the common shares on the Toronto Stock Exchange during a specified period prior to redemption is not less than 125% of the conversion price. 

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

Aecon Group Inc. is Canada’s largest, publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and on a selected basis internationally. Aecon is pleased to be recognized as one of the 10 Best Employers in Canada as published by Report on Business Magazine, as well as one of the Top 100 Employers in Canada as published in Maclean’s Magazine.