SNC-Lavalin Group Inc. priced a private offering of C$300 million aggregate principle amount of 2.689% series 1 unsecured debentures, due Nov. 24, 2020.
The offering is expected to close on or around Nov. 24, subject to customary closing conditions, according to a news release. The interest is payable semiannually at a fixed annual rate of 2.689%.
Proceeds from the offering will be used to repay certain debt outstanding under its existing main credit agreement and for general corporate purposes.
The debentures are being offered in Canada on a private-placement basis through a syndicate of agents led by CIBC World Markets, BMO Capital Markets and National Bank Financial Markets as joint bookrunners and co-lead private placement agents.
The debentures are direct unsecured obligations of SNC-Lavalin and within 60 days of the closing of the offering will become guaranteed by the same subsidiaries that guarantee the company's obligations under its existing main credit agreement.
DBRS Ltd. rated the debentures BBB on a provisional basis, with a stable trend, and S&P Global Ratings rated the notes BBB, with a stable outlook.
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