/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE
TORONTO, Oct. 2 /CNW/ - Aecon Group Inc ("Aecon") (TSX:ARE) would like to
correct an error that appeared in the fifth paragraph of its release "Aecon to
redeem 8.25% Debentures", issued earlier this morning.
The fifth paragraph of the release should read "The redemption of the
2009 Debentures will not affect Aecon's 8.25% subordinated convertible
debentures due March 17, 2010, which cannot be redeemed by Aecon prior to
March 17, 2008". The release issued earlier this morning contained an
The full corrected text of Aecon's intended disclosure follows here.
Aecon to redeem 8.25% Debentures
Toronto, Ontario - October 2, 2007: Aecon Group Inc. ("Aecon") (TSX:ARE)
announced today that it intends to redeem, in accordance with their terms, all
of its 8.25% subordinated convertible debentures due November 2, 2009 (the
"2009 Debentures"). Effective November 2, 2007, all 2009 Debentures which are
then outstanding will be redeemed at a redemption price equal to their
principal amount plus all accrued and unpaid interest to but not including the
As of September 30, 2007, an aggregate of approximately $30.9 million was
owing on account of principal and accrued interest under the 2009 Debentures.
However, until redeemed, the 2009 Debentures will remain convertible at the
option of the holders to acquire Aecon common shares at a conversion price of
$7.50 per share at any time on or prior to the close of business on
November 1, 2007. In light of the current trading price of Aecon's common
shares, it is anticipated that most, if not all, of the 2009 Debentures will
be converted, in which case up to an additional 4 million common shares of
Aecon will be issued.
"The capital raised through the issuance of these debentures was an
important part of Aecon's turnaround over the past couple of years," said
Scott Balfour, President and CFO, Aecon Group Inc. "In fact, the continuing
improvement in our financial results, along with our healthy balance sheet and
solid cash position, mean that Aecon no longer needs to carry the debt
associated with these debentures."
"The anticipated conversion of the debentures will reduce interest costs
by about $6 million over the next two years, in turn increasing Aecon's
profitability and significantly mitigating the dilutive effect of the
conversions," Mr. Balfour said.
The redemption of the 2009 Debentures will not affect Aecon's 8.25%
subordinated convertible debentures due March 17, 2010, which cannot be
redeemed by Aecon prior to March 17, 2008.
Aecon Group Inc. is Canada's largest publicly traded construction and
infrastructure development company. Aecon and its subsidiaries provide
services to private and public sector clients throughout Canada and
internationally. The Company's shares are listed for trading on the Toronto
Stock Exchange under the symbol ARE.
The information in this news release includes certain forward-looking
statements. These statements are based upon assumptions that are subject to
significant risks and uncertainties which are generally described in
Section 3.2 "Risk Factors" in the 2007 Annual Information Form filed on
March 30, 2007 and available on SEDAR at www.sedar.com. Although Aecon
believes that the expectations reflected in forward-looking statements are
reasonable, it can give no assurance that the expectations of any
forward-looking statements will prove to be correct.
For further information:
For further information: Mitch Patten, Vice President, Corporate
Affairs, Aecon Group Inc., (416) 297-2615, firstname.lastname@example.org, www.aecon.com