North American Construction Group Ltd. Announces Early Redemption of 5.5% Debentures Due June 30, 2028
North American Construction Group (NOA) has announced the early redemption of its 5.5% convertible unsecured subordinated debentures, originally due June 30, 2028. The redemption will be effective February 28, 2025. Debenture holders have the option to convert their holdings into common shares at $24.23 per share, representing a discount to the current share price of $28.45 as of January 29, 2025.
The total outstanding debentures amount to $74,106,000. Each debenture holder will receive a total payment of $1,008.86111, comprising $1,000 principal and $8.86111 in accrued interest from December 31, 2024. The company plans to make the redemption payment in cash and intends to delist the debentures from the Toronto Stock Exchange following redemption, subject to regulatory approval.
North American Construction Group (NOA) ha annunciato il riscatto anticipato delle sue obbligazioni convertibili non garantite subordinate al 5,5%, originariamente scadenza il 30 giugno 2028. Il riscatto sarà effettivo 28 febbraio 2025. I detentori di obbligazioni hanno l'opzione di convertire le loro partecipazioni in azioni ordinarie a $24,23 per azione, che rappresenta uno sconto rispetto al prezzo attuale delle azioni di $28,45 al 29 gennaio 2025.
Il totale delle obbligazioni in circolazione ammonta a $74.106.000. Ogni detentore di obbligazioni riceverà un pagamento totale di $1.008,86111, comprendente $1.000 di capitale e $8,86111 di interessi maturati dal 31 dicembre 2024. L'azienda prevede di effettuare il pagamento del riscatto in contante e intende dismettere le obbligazioni dalla Borsa di Toronto dopo il riscatto, soggetto all'approvazione normativa.
North American Construction Group (NOA) ha anunciado el rescate anticipado de sus bonos subordinados convertibles no garantizados del 5,5%, originalmente con vencimiento el 30 de junio de 2028. El rescate será efectivo el 28 de febrero de 2025. Los tenedores de bonos tienen la opción de convertir sus tenencias en acciones ordinarias a $24,23 por acción, lo que representa un descuento con respecto al precio actual de la acción de $28,45 al 29 de enero de 2025.
El total de bonos pendientes asciende a $74.106.000. Cada tenedor de bonos recibirá un pago total de $1.008,86111, que comprende $1.000 de capital y $8,86111 de intereses acumulados desde el 31 de diciembre de 2024. La empresa planea realizar el pago del rescate en efectivo y tiene la intención de deslistar los bonos de la Bolsa de Toronto tras el rescate, sujeto a la aprobación regulatoria.
노스 아메리칸 콘스트럭션 그룹 (NOA)는 원래 2028년 6월 30일 만기인 5.5% 전환 불확실한 하위 채권의 조기 상환을 발표했습니다. 상환은 2025년 2월 28일에 시행됩니다. 채권 보유자는 2025년 1월 29일 기준으로 현재 주가인 $28.45보다 할인된 가격인 주당 $24.23로 보유하고 있는 채권을 일반주로 전환할 수 있는 옵션이 있습니다.
현재 발행된 채권 총액은 $74,106,000입니다. 각 채권 보유자는 $1,000 원금과 2024년 12월 31일부터 발생한 $8.86111의 이자를 포함하여 총 $1.008,86111의 지급을 받게 됩니다. 이 회사는 상환 지불을 현금으로 시행할 계획이며, 규제 승인에 따라 상환 후 토론토 증권 거래소에서 채권을 상장 폐지할 의도입니다.
North American Construction Group (NOA) a annoncé le remboursement anticipé de ses obligations convertibles non sécurisées subordonnées à 5,5 %, initialement échues le 30 juin 2028. Le remboursement sera effectif le 28 février 2025. Les détenteurs d'obligations ont la possibilité de convertir leurs avoirs en actions ordinaires au prix de 24,23 $ par action, ce qui représente une décote par rapport au prix actuel de l'action de 28,45 $ au 29 janvier 2025.
Le montant total des obligations en circulation s'élève à 74.106.000 $. Chaque détenteur d'obligations recevra un paiement total de 1.008,86111 $, comprenant 1.000 $ de principal et 8,86111 $ d'intérêts courus depuis le 31 décembre 2024. La société prévoit d'effectuer le paiement du remboursement en espèces et a l'intention de retirer les obligations de la Bourse de Toronto après le remboursement, sous réserve de l'approbation réglementaire.
North American Construction Group (NOA) hat die vorzeitige Rückzahlung seiner 5,5% wandelbaren unbesicherten nachrangigen Anleihen bekannt gegeben, die ursprünglich am 30. Juni 2028 fällig sein sollten. Die Rückzahlung wird am 28. Februar 2025 wirksam. Die Anleiheninhaber haben die Möglichkeit, ihre Bestände zu einem Preis von 24,23 $ pro Aktie in Stammaktien umzuwandeln, was einem Rabatt zum aktuellen Aktienkurs von 28,45 $ am 29. Januar 2025 entspricht.
Die insgesamt ausstehenden Anleihen belaufen sich auf 74.106.000 $. Jeder Anleiheninhaber erhält eine Gesamtzahlung von 1.008,86111 $, bestehend aus 1.000 $ Kapital und 8,86111 $ aufgelaufenen Zinsen seit dem 31. Dezember 2024. Das Unternehmen plant, die Rückzahlung in bar vorzunehmen und beabsichtigt, die Anleihen nach der Rückzahlung von der Toronto Stock Exchange abzuziehen, vorbehaltlich der behördlichen Genehmigung.
- Debenture holders can convert at $24.23 per share, below current market price of $28.45
- Company has sufficient cash to redeem $74.1M in debentures
- Early redemption indicates strong financial position
- Cash outflow of approximately $74.7M required for redemption
Insights
This strategic early redemption of
The financial implications are multifaceted:
- If all holders convert, NACG would issue approximately 3.06 million new shares, representing a dilution of about
11.4% , but would preserve$74.1M in cash - Full cash redemption would reduce debt but require significant cash outlay, impacting liquidity
- The elimination of the
5.5% interest obligation will improve annual cash flow by approximately$4.1M
This move demonstrates strong financial management as NACG takes advantage of its elevated share price to potentially convert debt to equity at favorable terms. The decision to redeem early suggests confidence in the company's liquidity position and operations. For investors, this development indicates balance sheet optimization and could lead to improved financial flexibility for future growth initiatives.
ACHESON, Alberta, Jan. 29, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA/NYSE:NOA) announced today that it has delivered notice to the holders of the Company’s outstanding
In accordance with the Trust Indenture, holders of these Debentures may convert the outstanding Debentures into common shares of the Company at a price of
The Company encourages individual holders of Debentures (“Debentureholders”) to review redemption instructions from their financial institution to ensure a request for conversion is submitted in advance of the cutoff time set by the Debentureholder’s financial institution. This can be several days in advance of the Redemption Date and is not controlled by the Company.
As of the date hereof, there was
The Company intends to pay the Redemption Price in cash. Subject to regulatory approval, the Company intends to have the Debentures de-listed from the Toronto Stock Exchange following their redemption.
About the Company
NACG is one of Canada and Australia’s largest providers of heavy construction and mining services. For more than 70 years, NACG has provided services to the mining, resource, and infrastructure construction markets. For more information about North American Construction Group Ltd., visit www.nacg.ca.
For further information contact:
Jason Veenstra, CPA, CA
Chief Financial Officer
North American Construction Group Ltd.
(780) 948-2009
jveenstra@nacg.ca
www.nacg.ca
Forward-Looking Information
The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “will”, “intends”, “may”, “could” or similar expressions. In particular, this news release contains forward-looking statements and information relating to the redemption of the Debentures, the issuance of Common Shares as payment of the Redemption Price, the payment of cash in respect of interest and fractional shares and the anticipated de-listing of the Debentures. These forward-looking statements are being made by NACG based on certain assumptions that NACG has made in respect thereof as at the date of this news release, regarding, among other things that all required regulatory approvals will be obtained on the necessary terms in a timely manner; and that NACG will, on the Redemption Date, meet all of the required terms and conditions of the Debentures (including those set forth in the applicable debenture indentures) in order to effect the redemption on the terms currently contemplated (which includes assumptions respecting trading prices of the Common Shares). These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties, including, but not limited to: the risk that regulatory approvals will not be obtained in the timelines or on the terms required thereby delaying the redemption or causing it to not occur at all; the risk that NACG will not be able to meet the requirements for redemption on the Redemption Date, including with respect to the price of its Common Shares, which ability may be impacted by a number of risk factors. The material factors or assumptions used to develop the above forward-looking statements and the risks and uncertainties to which such forward-looking statements are subject are highlighted in the Company’s MD&A for the year ended December 31, 2023 and quarter ending September 30, 2024. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com.
FAQ
What is the redemption price for NOA's 5.5% convertible debentures?
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