North American Construction Group Ltd. Announces the Completion of Its Redemption of Its 5.5% Convertible Debentures Due June 30, 2028

North American Construction Group (NOA) has successfully completed the redemption of its 5.5% Convertible Debentures originally due June 30, 2028.

Rhea-AI Summary

North American Construction Group (NOA) has successfully completed the redemption of its 5.5% Convertible Debentures originally due June 30, 2028. The redemption process was finalized on February 28, 2025, following a notice issued to debenture holders on January 29, 2025.

Debenture holders were given the option to either convert their holdings into common shares at $24.23 per share or receive the principal amount plus accrued interest. Of the total debentures, $72,749,000 in principal amount was converted to common shares, while the remaining $1,357,000 was redeemed by the company on the redemption date.

Positive

• High conversion rate of debentures to equity (98.2% of total)
• Reduction in interest-bearing debt obligations
• Strengthened balance sheet through debt-to-equity conversion

Negative

• Potential dilution of existing shareholders due to conversion of $72.7M debentures

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ACHESON, Alberta, Feb. 28, 2025 (GLOBE NEWSWIRE) --  North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA/NYSE:NOA) is pleased to announce the completion of its redemption of its 5.5% Convertible Debentures due June 30, 2028 (the “Debentures”) on February 28, 2025 (the “Redemption Date”).

On January 29, 2025, the Company issued a notice of redemption to the holders of the Debentures to redeem all issued and outstanding Debentures at a redemption price equal to their principal amount, plus accrued and unpaid interest thereon up to, but excluding, the Redemption Date. Holders of the Debentures had the option to convert such Debentures into common shares of the Company (“Common Shares”) prior to the Redemption Date at a price of $24.23 per Common Share. $72,749,000 principal amount of Debentures were converted into Common Shares between January 29, 2025 and the Redemption Date. On the Redemption Date, Debentures in the principal amount of $1,357,000 were redeemed by the Company.

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was the conversion price for NOA's 5.5% Convertible Debentures in the February 2025 redemption?

The conversion price was $24.23 per common share.

How much of NOA's convertible debentures were converted to common shares in February 2025?

$72,749,000 principal amount of debentures were converted into common shares.

When did North American Construction Group announce the redemption of its 5.5% convertible debentures?

The company announced the redemption notice on January 29, 2025.

What was the remaining amount of NOA debentures redeemed on February 28, 2025?

$1,357,000 in principal amount of debentures were redeemed on the redemption date.