North American Construction Group Ltd. Announces Pricing of Private Placement Offering of $225 Million Senior Unsecured Notes
North American Construction Group (NOA) has announced a private placement offering of $225 million Senior Unsecured Notes due May 1, 2030. The Notes will be issued at $1,000 per Note with a 7.75% annual interest rate, payable semi-annually on November 1 and May 1, starting November 1, 2025.
The offering is being led by multiple financial institutions including National Bank Financial, ATB Securities, Scotia Capital, and TD Securities. The company plans to use the proceeds to repay existing Credit Agreement debt and for general corporate purposes. The Notes are being offered privately in Canada and to qualified institutional buyers in the US under Rule 144A. The offering is expected to close around May 1, 2025.
North American Construction Group (NOA) ha annunciato un'offerta privata di obbligazioni senior non garantite da 225 milioni di dollari con scadenza il 1º maggio 2030. Le obbligazioni saranno emesse a 1.000 dollari ciascuna con un tasso di interesse annuo del 7,75%, pagabile semestralmente il 1º novembre e il 1º maggio, a partire dal 1º novembre 2025.
L'offerta è guidata da diverse istituzioni finanziarie, tra cui National Bank Financial, ATB Securities, Scotia Capital e TD Securities. La società intende utilizzare i proventi per rimborsare il debito esistente previsto dall'Accordo di Credito e per scopi aziendali generali. Le obbligazioni sono offerte privatamente in Canada e a investitori istituzionali qualificati negli Stati Uniti secondo la Regola 144A. La chiusura dell'offerta è prevista intorno al 1º maggio 2025.
North American Construction Group (NOA) ha anunciado una oferta privada de notas senior no garantizadas por 225 millones de dólares con vencimiento el 1 de mayo de 2030. Las notas se emitirán a 1.000 dólares cada una con una tasa de interés anual del 7,75%, pagadera semestralmente el 1 de noviembre y el 1 de mayo, comenzando el 1 de noviembre de 2025.
La oferta está liderada por varias instituciones financieras, incluyendo National Bank Financial, ATB Securities, Scotia Capital y TD Securities. La empresa planea usar los fondos para pagar la deuda existente bajo el Acuerdo de Crédito y para propósitos corporativos generales. Las notas se ofrecen de forma privada en Canadá y a compradores institucionales calificados en EE. UU. bajo la Regla 144A. Se espera que la oferta cierre alrededor del 1 de mayo de 2025.
North American Construction Group (NOA)는 2030년 5월 1일 만기인 2억 2,500만 달러 규모의 선순위 무담보 채권을 사모 발행한다고 발표했습니다. 채권은 각각 1,000달러에 발행되며, 연 7.75%의 이자율이 적용되어 2025년 11월 1일부터 매년 11월 1일과 5월 1일에 반기별로 이자가 지급됩니다.
이번 발행은 National Bank Financial, ATB Securities, Scotia Capital, TD Securities 등 여러 금융기관이 주도하고 있습니다. 회사는 조달 자금을 기존 신용계약 부채 상환 및 일반 기업 목적에 사용할 계획입니다. 채권은 캐나다 내에서 사모 방식으로, 미국에서는 Rule 144A에 따라 적격 기관 투자자에게 제공됩니다. 발행 마감은 2025년 5월 1일경으로 예상됩니다.
North American Construction Group (NOA) a annoncé une offre privée de obligations senior non garanties de 225 millions de dollars arrivant à échéance le 1er mai 2030. Les obligations seront émises au prix de 1 000 dollars chacune avec un taux d'intérêt annuel de 7,75%, payable semestriellement les 1er novembre et 1er mai, à partir du 1er novembre 2025.
L'offre est menée par plusieurs institutions financières, dont National Bank Financial, ATB Securities, Scotia Capital et TD Securities. La société prévoit d'utiliser les fonds pour rembourser la dette existante au titre de l'accord de crédit et pour des besoins généraux d'entreprise. Les obligations sont offertes en privé au Canada et aux acheteurs institutionnels qualifiés aux États-Unis selon la règle 144A. La clôture de l'offre est prévue aux alentours du 1er mai 2025.
North American Construction Group (NOA) hat eine Privatplatzierung von 225 Millionen US-Dollar Senior Unsecured Notes mit Fälligkeit am 1. Mai 2030 angekündigt. Die Notes werden zu je 1.000 US-Dollar ausgegeben und weisen einen jährlichen Zinssatz von 7,75% auf, der halbjährlich am 1. November und 1. Mai, beginnend am 1. November 2025, gezahlt wird.
Das Angebot wird von mehreren Finanzinstituten geleitet, darunter National Bank Financial, ATB Securities, Scotia Capital und TD Securities. Das Unternehmen plant, die Erlöse zur Rückzahlung bestehender Verbindlichkeiten aus dem Kreditvertrag sowie für allgemeine Unternehmenszwecke zu verwenden. Die Notes werden privat in Kanada und an qualifizierte institutionelle Käufer in den USA gemäß Rule 144A angeboten. Der Abschluss der Platzierung wird voraussichtlich um den 1. Mai 2025 erfolgen.
- Successful $225 million debt financing secured
- Debt restructuring opportunity through repayment of existing credit agreement
- Strong financial institution support with multiple leading underwriters
- High interest rate of 7.75% on new debt
- Increased long-term debt obligation until 2030
- Additional interest expense will impact future cash flows
Insights
NACG's $225M debt offering refinances existing credit facilities with 7.75% unsecured notes due 2030, representing 50% of market capitalization.
North American Construction Group has successfully priced a
The unsecured nature of these notes is noteworthy - it signals that creditors are comfortable with NACG's creditworthiness without requiring specific collateral, indicating solid financial fundamentals. The
What's particularly important is that this transaction represents a refinancing rather than additional leverage. The company explicitly states the proceeds will repay existing indebtedness under its Credit Agreement. Without knowing the terms of the current debt being replaced, we can't determine if this new rate represents an improvement in borrowing costs.
The broad syndicate of nine financial institutions led by National Bank Financial suggests strong institutional confidence in NACG's debt. For context, in the heavy construction and infrastructure sector, long-term debt stability is especially valuable given the typically lumpy project-based revenue streams and capital-intensive nature of operations.
This refinancing provides NACG with a clear debt structure for the next five years, potentially creating additional financial flexibility depending on the terms of the debt being replaced.
ACHESON, Alberta, April 25, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG”) (TSX: NOA / NYSE: NOA) announced today that it has entered into an underwriting agreement to sell, pursuant to a private placement offering (the “Offering”),
NACG intends to use the net proceeds of the Offering to repay indebtedness under its existing Credit Agreement, and for general corporate purposes.
The Notes are being conditionally offered for sale in Canada on a private placement basis pursuant to certain prospectus exemptions. The Notes have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and are being offered and sold in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the U.S. Securities Act and applicable state securities laws and outside the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act.
The Offering is being led by National Bank Financial Inc., including its U.S. affiliates, ATB Securities Inc., Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Canaccord Genuity Corp., Raymond James Ltd., and Ventum Financial Corp.
Subject to customary closing conditions, the closing of the Offering is expected to occur on or about May 1, 2025.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About the Company
North American Construction Group Ltd. is a premier provider of heavy civil construction and mining services in Australia, Canada, and the U.S. For over 70 years, NACG has provided services to the mining, resource and infrastructure construction markets.
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 "anticipate", "believe", "expect", "should" or similar expressions and include guidance with respect to the Offering, including, but not limited to, the expected closing of the Offering and the use of proceeds of the Offering. 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, include, but are not limited to, the closing of the Offering, the anticipated closing date of the Offering and the expected use of proceeds of the Offering, interest rates and market conditions, heavy equipment demand, and credit risks and existing indebtedness. 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. Although NACG believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and NACG cautions you to not place undue reliance upon forward-looking statements. NACG undertakes no obligation, other than those required by applicable law, to update or revise such forward-looking statements. 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.ca and on our company website at www.nacg.ca.
For more information, contact:
Jason Veenstra, CPA, CA
Chief Financial Officer
North American Construction Group Ltd.
(780) 960.7171
ir@nacg.ca
www.nacg.ca
Source: North American Construction Group Ltd.
FAQ
What are the key terms of NOA's $225 million Senior Unsecured Notes offering?
How will North American Construction Group use the proceeds from the Notes offering?
Who are the underwriters for NOA's $225 million Notes offering?
When is the expected closing date for NOA's Notes offering?
