Student Transportation of America Announces BoughtBARRIE, ONTARIO--(Marketwire - Oct. 5, 2009) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Student Transportation of America Ltd. (the "Company") (TSX:STB) announced today that it has entered into an agreement to sell to a syndicate of underwriters led by BMO Capital Markets, and including CIBC World Markets Inc., Scotia Capital Inc., Cormark Securities Inc., Wellington West Capital Markets Inc., National Bank Financial Inc., and Raymond James Ltd. on a bought deal basis C$45 million aggregate principal amount of 7.50% convertible unsecured subordinated debentures due October 31, 2014 (the "Debentures"). The Debentures will bear interest at a rate of 7.50% per annum payable semi-annually, and will be convertible at the option of the holder into common shares of the Company at a conversion rate of 194.1748 common shares per $1,000 principal amount of Debentures, which is equal to a conversion price of C$5.15 per common share. The Company has granted the underwriters an over-allotment option, exercisable in whole or in part at anytime up 30 days after closing to purchase up to an additional $6.75 million of Debentures at the same offering price. Closing is expected on or about October 26, 2009.
The Debentures to be issued under this offering will be offered by way of a short form prospectus in each province and territory of Canada, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
The net proceeds of the offering will be used to fund redemption of 14% subordinated notes and for general corporate purposes.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Student Transportation of America Ltd. (TSX:STB)
Founded in 1997, Student Transportation of America (STA) is North America's third-largest and fastest-growing provider of school bus transportation services, operating more than 6,300 vehicles. STA's family of local companies delivers safe, reliable, and cost-effective transportation solutions to school districts throughout the U.S. and Canada. Services are delivered by drivers, dispatchers, maintenance technicians, terminal managers and others who are caring members of their local communities. For more information, please visit www.rideSTA.com.