Issues Notice of Redemption for Existing $80.5 Million Convertible Debentures
CALGARY, Sept. 23, 2019 /CNW/ – Stuart Olson Inc. (TSX: SOX, SOX.DB.A) (“Stuart Olson” or the “Company”) has closed its previously announced $70.0 million convertible debenture financing, and has provided a notice of redemption to the trustee for its existing $80.5 million convertible debentures. The existing debentures will be redeemed and repaid in cash on October 23, 2019 from the net proceeds of the financing with the remaining funds being provided from other sources, including existing cash and the Company’s revolving credit facility.
At the Company’s Special Meeting of Shareholders, held on September 20, 2019, 98.2% of the shares voted at the meeting were in favour of the financing and related waiver of the Company’s shareholder rights plan to effect the financing.
The Toronto Stock Exchange (“TSX”) had previously conditionally approved the financing, and all requisite documents have been filed by the Company for final TSX approval.
“We are very pleased with the strong support from our shareholders, as evidenced by the over 98% of votes cast in favour of the financing at our special meeting of shareholders. Having the debenture financing now closed, combined with the upcoming redemption of our existing debentures, provides us a strong foundation to execute on our growth strategies and deliver value for all our stakeholders,” said David LeMay, President and CEO of Stuart Olson.
ABOUT STUART OLSON INC.
Stuart Olson Inc. provides general contracting and electrical building systems contracting in the public and private construction markets as well as general contracting, electrical, mechanical and specialty trades, such as insulation, cladding and asbestos abatement, in the industrial construction and services market. The Company operates office locations and projects throughout Western Canada, Ontario and the territories. In 2019 Stuart Olson was recognized as one of Alberta’s Top Employers for the third consecutive year. Stuart Olson’s common shares and convertible debentures are listed on the Toronto Stock Exchange under the symbols “SOX” and “SOX.DB.A”, respectively. www.stuartolson.com
Forward Looking Information
This press release contains certain statements that may constitute forward-looking information within the meaning of applicable securities laws. This forward-looking information includes, without limitation, statements relating to TSX final approval, the timing and source of funds for settlement of the Company’s outstanding debentures, and the Company’s plans and strategies. Often, but not always, forward-looking information can be identified by the use of such words as “may”, “will”, “expect”, “believe”, “plan”, “intend”, “estimate”, “outlook”, “forecast”, “should”, “anticipate” and other similar terminology, including statements concerning possible or assumed future results. Forward-looking information is based on management’s reasonable assumptions, analysis and estimates in respect of its experience and perception of trends, current economic conditions, government policies and expected developments, as well as other material factors that it considers to be relevant at the time of making such statements.
The forward-looking information in this press release is included solely for the purpose of assisting investors in understanding Stuart Olson’s financial position and the results of its operations as at the date hereof. By its nature, forward-looking information involves known and unknown risks and uncertainties, which give rise to the possibility that management’s assumptions, analysis and estimates will be incorrect and that Stuart Olson’s anticipated results will not be achieved. Although Stuart Olson believes that the statements with respect to forward-looking information are reasonable and current, such statements should not be interpreted as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. Forward-looking information is necessarily subject to a number of factors that may cause actual results to differ materially from those results implied by the expectations suggested by such information. Those factors include, without limitation, the risks and uncertainties described in Stuart Olson’s Annual Information Form filed with the securities regulatory authorities in Canada under Stuart Olson’s profile at www.sedar.com. Readers are encouraged to consider the foregoing risks and other factors carefully when evaluating the forward-looking information and are cautioned not to place undue reliance upon such information when making investment decisions.
The forward-looking information in this press release is current to the date hereof, and is subject to change following such date. While Stuart Olson may elect to do so, unless required by applicable law, it undertakes no obligation to update this information to reflect new information or circumstances at any particular time.
SOURCE Stuart Olson Inc.