North American Construction Group Ltd. Announces Closing of the Over-Allotment Option

Rhea-AI Summary

North American Construction Group Ltd. (NOA) has successfully closed the underwriters' over-allotment option, raising an additional $9.75 million from the sale of 5.50% convertible unsecured subordinated debentures. This follows their recent offering, bringing total gross proceeds to $74.75 million. The funds will primarily be used to repay senior indebtedness under their revolving credit facility. The debentures will not be registered under U.S. Securities Act and cannot be sold in the U.S. without an exemption.

Positive

• Successfully closed $9.75 million over-allotment option.
• Total gross proceeds raised amount to $74.75 million.
• Intends to use proceeds to repay senior indebtedness, strengthening balance sheet.

Negative

• None.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE U.S.

ACHESON, Alberta, June 04, 2021 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG” or the “Company”) (TSX/NYSE: NOA) is pleased to announce the closing of the Underwriters’ (as defined below) over-allotment option, in full. The Underwriters purchased an additional $9.75 million aggregate principal amount of 5.50% convertible unsecured subordinated debentures of the Company (the “Debentures”), on the same terms and conditions of the Company’s recently completed offering of Debentures (the “Offering”), for aggregate gross proceeds to the Company of $74,750,000.

The Offering was completed through a syndicate of underwriters led by National Bank Financial Inc. and including Canaccord Genuity Corp., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., ATB Capital Markets Inc., BMO Nesbitt Burns Inc., and Raymond James Ltd. (collectively, the “Underwriters”).

As previously announced, NACG intends to use the net proceeds of the Offering primarily to repay senior indebtedness under the Company’s revolving credit facility, which revolving credit facility, and future borrowings under such credit facility, may continue to be used for general corporate purposes.

The Debentures have not been and will not be registered under the U.S. Securities Act of 1933 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 news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

About the Company

North American Construction Group Ltd. (www.nacg.ca) is one of Canada’s largest providers of heavy construction and mining services. For more than 65 years, NACG has provided services to large resource-based companies.

For further information, please contact:

Jason Veenstra, CPA, CA
Chief Financial Officer
North American Construction Group Ltd.
Phone: (780) 948-2009
Email: jveenstra@nacg.ca 

Forward-Looking Information

The information provided in this release contains forward-looking information and forward-looking statements (together, “forward-looking statements”). Forward-looking statements include statements preceded by, followed by or that include the words “expect”, “may”, “could”, “believe”, “anticipate”, “continue”, “should”, “estimate”, “potential”, “likely”, “target” or similar expressions. The material factors or assumptions used to develop the above forward-looking statements include, and the risks and uncertainties to which such forward-looking statements are subject, are highlighted in the Company’s Management’s Discussion and Analysis for the year ended December 31, 2020 and the Company’s annual information form dated February 17, 2021. Actual results could differ materially from those contemplated by such forward-looking statements as a result of any number of factors and uncertainties, many of which are beyond NACG’s control. Undue reliance should not be placed upon forward-looking statements and NACG undertakes no obligation, other than those required by applicable law, to update or revise those statements. For more complete information about NACG, you should read the Company’s disclosure documents filed with the SEC and the CSA. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov or SEDAR on the CSA website at www.sedar.com.

FAQ

What is the total amount raised by North American Construction Group in their recent offering?

North American Construction Group raised a total of $74.75 million in their recent offering.

What will the proceeds from the debenture offering be used for?

The proceeds will primarily be used to repay senior indebtedness under the company's revolving credit facility.

What are the terms of the convertible debentures issued by NOA?

The convertible debentures have an interest rate of 5.50%.

Are the debentures issued by North American Construction Group registered under U.S. law?

No, the debentures are not registered under the U.S. Securities Act of 1933.