SNC-Lavalin Group Inc. on Feb. 28 said it has priced an offering of unsecured debentures in three series, in a total amount of C$525 million.
The new debentures consist of C$150 million in floating rate series 2 debentures due 2019, C$175 million in floating rate series 3 debentures due 2021 and C$200 million in 3.235% series 4 debentures due 2023.
The offering is expected to close by March 2, subject to customary conditions. The company plans to allot the net proceeds of the offering to repay certain debt and for general corporate purposes.
The debentures are being offered through a syndicate of agents led by BMO Capital Markets, CIBC World Markets, National Bank Financial Markets and Scotiabank, as joint bookrunners, and which also includes RBC Capital Markets, TD Securities, HSBC Securities and Desjardins Securities.
Interest on the series 2 and series 3 debentures will be payable in cash quarterly over their respective one-year and three-year terms every second day of March, June, September and December, starting June 2, 2018. The series 2 debentures will bear interest at a rate equal to the 3-month bankers' acceptance rate plus 35 basis points while the series 3 Debentures will bear interest at a rate equal to the 3-month bankers' acceptance rate plus 54 basis points.
The series 4 debentures will bear interest at a fixed annual rate of 3.235%, payable in equal semiannual installments over the 5-year term, starting Sept. 2, 2018.
