North American Construction Group Ltd. Announces Closing of Private Placement Offering of $225 Million Senior Unsecured Notes
North American Construction Group (NOA) has successfully completed a private placement offering of $225 million in Senior Unsecured Notes. The notes, carrying a 7.75% interest rate and maturing on May 1, 2030, were offered through private placement in Canada and to qualified institutional buyers in the United States under Rule 144A. The company plans to use the proceeds to repay existing credit agreement debt and for general corporate purposes. The offering was underwritten by several major financial institutions, including National Bank Financial, ATB Securities, Scotia Capital, and TD Securities.
North American Construction Group (NOA) ha completato con successo un collocamento privato di 225 milioni di dollari in obbligazioni senior non garantite. Le obbligazioni, con un tasso d'interesse del 7,75% e scadenza il 1° maggio 2030, sono state offerte tramite collocamento privato in Canada e a investitori istituzionali qualificati negli Stati Uniti ai sensi della Regola 144A. La società intende utilizzare i proventi per rimborsare il debito esistente derivante da accordi di credito e per scopi aziendali generali. L'offerta è stata sottoscritta da diverse importanti istituzioni finanziarie, tra cui National Bank Financial, ATB Securities, Scotia Capital e TD Securities.
North American Construction Group (NOA) ha completado con éxito una colocación privada de 225 millones de dólares en bonos senior no garantizados. Los bonos, con una tasa de interés del 7,75% y vencimiento el 1 de mayo de 2030, se ofrecieron mediante colocación privada en Canadá y a compradores institucionales calificados en Estados Unidos bajo la Regla 144A. La compañía planea usar los fondos para pagar la deuda existente bajo acuerdos crediticios y para propósitos corporativos generales. La oferta fue suscrita por varias instituciones financieras importantes, incluyendo National Bank Financial, ATB Securities, Scotia Capital y TD Securities.
North American Construction Group (NOA)는 2억 2,500만 달러 규모의 시니어 무담보 채권을 사모로 성공적으로 발행했습니다. 이 채권은 7.75%의 이자율을 가지며 2030년 5월 1일에 만기가 도래합니다. 캐나다 내 사모 방식과 미국 내 규칙 144A에 따른 적격 기관 투자자들을 대상으로 제공되었습니다. 회사는 조달 자금을 기존 신용 계약 부채 상환 및 일반 기업 목적에 사용할 계획입니다. 이번 발행은 National Bank Financial, ATB Securities, Scotia Capital, TD Securities 등 주요 금융기관들이 인수했습니다.
North American Construction Group (NOA) a réussi une émission privée de 225 millions de dollars en obligations senior non garanties. Ces obligations, portant un taux d'intérêt de 7,75% et arrivant à échéance le 1er mai 2030, ont été proposées par placement privé au Canada et à des investisseurs institutionnels qualifiés aux États-Unis selon la règle 144A. La société prévoit d'utiliser les fonds pour rembourser sa dette existante liée à des accords de crédit et pour des besoins généraux d'entreprise. L'offre a été souscrite par plusieurs grandes institutions financières, notamment National Bank Financial, ATB Securities, Scotia Capital et TD Securities.
North American Construction Group (NOA) hat erfolgreich eine Privatplatzierung von 225 Millionen US-Dollar in Form von Senior Unsecured Notes abgeschlossen. Die Anleihen, mit einem Zinssatz von 7,75% und Fälligkeit am 1. Mai 2030, wurden durch Privatplatzierung in Kanada sowie an qualifizierte institutionelle Käufer in den USA gemäß Regel 144A angeboten. Das Unternehmen plant, die Erlöse zur Rückzahlung bestehender Kreditverbindlichkeiten und für allgemeine Unternehmenszwecke zu verwenden. Die Platzierung wurde von mehreren großen Finanzinstituten unterzeichnet, darunter National Bank Financial, ATB Securities, Scotia Capital und TD Securities.
- Successful raising of $225 million through senior notes offering
- Long-term debt maturity extending to 2030 provides financial stability
- Proceeds will help reduce existing credit agreement debt, improving debt structure
- High interest rate of 7.75% represents significant debt servicing costs
- Additional debt burden could impact company's financial flexibility
ACHESON, Alberta, May 01, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG”) (TSX: NOA / NYSE: NOA) announced today that it has successfully closed its previously announced private placement offering (the “Offering”) of
As previously stated, NACG will utilize the proceeds of the Offering to repay indebtedness under its existing Credit Agreement, and for general corporate purposes.
The Notes were 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 were 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 was underwritten 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.
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 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 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 is the size and interest rate of NOA's new senior notes offering?
How will North American Construction Group use the proceeds from the notes offering?
Who were the underwriters for NOA's $225 million notes offering?
When do NOA's new senior unsecured notes mature?
Where were NOA's senior notes offered for sale?
