North American Construction Group Completes Redemption of 5.5% Convertible Debentures
Generated by AI AgentWesley Park
Friday, Feb 28, 2025 6:19 pm ET1min read
NOA--
North American Construction Group Ltd. (NACG) has successfully completed the redemption of its 5.5% Convertible Debentures due June 30, 2028. The company announced the completion of the redemption on February 28, 2025, following a notice issued to debenture holders on January 29, 2025. The redemption process was finalized on the Redemption Date, with Debentures in the principal amount of $1,357,000 redeemed by the Company.
The redemption of the Debentures was an important step for NACG, as it allowed the company to reduce its outstanding debt and improve its capital structure. The redemption price of $1,008.86111 per Debenture included the principal amount of $1,000.00 and all accrued and unpaid interest of $8.86111 from December 31, 2024 until the Redemption Date of February 28, 2025. This redemption price was higher than the market value of the Debentures, which was $1,000.00 per Debenture before the redemption notice was issued.
In addition to the redemption option, debenture holders were given the opportunity to convert their holdings into common shares at a price of $24.23 per share. This conversion option was likely offered to encourage debenture holders to convert their holdings into common shares, which would increase the Company's equity and reduce its debt obligations. As a result, $72,749,000 principal amount of Debentures were converted into Common Shares between January 29, 2025 and the Redemption Date.
The completion of the redemption of the 5.5% Convertible Debentures is a positive development for NACG, as it allows the company to reduce its outstanding debt and improve its capital structure. The redemption price of $1,008.86111 per Debenture was higher than the market value of the Debentures, which indicates that NACG was willing to pay a premium to redeem the Debentures. The conversion option offered to debenture holders also contributed to the successful completion of the redemption process, as a significant portion of debenture holders chose to convert their holdings into common shares.
In conclusion, the redemption of the 5.5% Convertible Debentures is a positive development for NACG, as it allows the company to reduce its outstanding debt and improve its capital structure. The redemption price of $1,008.86111 per Debenture was higher than the market value of the Debentures, and the conversion option offered to debenture holders contributed to the successful completion of the redemption process.
North American Construction Group Ltd. (NACG) has successfully completed the redemption of its 5.5% Convertible Debentures due June 30, 2028. The company announced the completion of the redemption on February 28, 2025, following a notice issued to debenture holders on January 29, 2025. The redemption process was finalized on the Redemption Date, with Debentures in the principal amount of $1,357,000 redeemed by the Company.
The redemption of the Debentures was an important step for NACG, as it allowed the company to reduce its outstanding debt and improve its capital structure. The redemption price of $1,008.86111 per Debenture included the principal amount of $1,000.00 and all accrued and unpaid interest of $8.86111 from December 31, 2024 until the Redemption Date of February 28, 2025. This redemption price was higher than the market value of the Debentures, which was $1,000.00 per Debenture before the redemption notice was issued.
In addition to the redemption option, debenture holders were given the opportunity to convert their holdings into common shares at a price of $24.23 per share. This conversion option was likely offered to encourage debenture holders to convert their holdings into common shares, which would increase the Company's equity and reduce its debt obligations. As a result, $72,749,000 principal amount of Debentures were converted into Common Shares between January 29, 2025 and the Redemption Date.
The completion of the redemption of the 5.5% Convertible Debentures is a positive development for NACG, as it allows the company to reduce its outstanding debt and improve its capital structure. The redemption price of $1,008.86111 per Debenture was higher than the market value of the Debentures, which indicates that NACG was willing to pay a premium to redeem the Debentures. The conversion option offered to debenture holders also contributed to the successful completion of the redemption process, as a significant portion of debenture holders chose to convert their holdings into common shares.
In conclusion, the redemption of the 5.5% Convertible Debentures is a positive development for NACG, as it allows the company to reduce its outstanding debt and improve its capital structure. The redemption price of $1,008.86111 per Debenture was higher than the market value of the Debentures, and the conversion option offered to debenture holders contributed to the successful completion of the redemption process.
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