Student Transportation arranges $85-million bought deal
Student Transportation Inc (C:STB)
Shares Issued 91,812,332
Last Close 7/27/2016 $6.89
Wednesday July 27 2016 - News Release
Mr. Doug Coupe reports
STUDENT TRANSPORTATION INC. ANNOUNCES C$85 MILLION BOUGHT DEAL OFFERING OF CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES
Student Transportation Inc. has entered into an agreement, on a bought deal basis, to sell $85-million aggregate principal amount of 5.25-per-cent convertible unsecured subordinated debentures due Sept. 30, 2021. The transaction is being underwritten by a syndicate led by National Bank Financial Inc.
STI intends to use the net proceeds of the offering to fund the redemption of the Company's 6.25% US convertible unsecured subordinated debentures (STB:DB.U) maturing on June 30, 2018, and for general corporate purposes. The transaction will have minimal impact on the Company's total net debt.
The Debentures will be convertible at the holder's option into common shares of the Company at a conversion price of C$9.35 per common share. The Debentures will not be redeemable prior to September 30, 2019. On or after September 30, 2019 and prior to September 30, 2020, the Debentures may be redeemed in whole or in part at the option of the Company on not more than 60 days and not less than 30 days prior notice at a price equal to their principal amount thereof plus accrued and unpaid interest, provided that the volume weighted average trading price of the Common Shares on the TSX for the 20 consecutive trading days preceding the date on which the notice of redemption is given is not less than 125% of the Conversion Price. On or after September 30, 2020 and prior to Maturity, the Debentures may be redeemed in whole or in part at the option of the Company on not more than 60 days and not less than 30 days prior notice at a price equal to their principal amount plus accrued and unpaid interest.
In connection with the Offering, STI will file a preliminary short-form prospectus in all provinces of Canada. Closing of the Offering is expected to be completed on or about August 16, 2016 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.