/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE
TORONTO, Feb. 15 /CNW/ - 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 March 17, 2010 (the "2010
Debentures"). Effective March 18, 2008, all 2010 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 January 31, 2008 an aggregate of approximately $32.7 million was
owing on account of principal and accrued interest under the 2010 Debentures.
However, until redeemed, the 2010 Debentures will remain convertible at the
option of the holders to acquire Aecon common shares at a conversion price of
$7.60 per share at any time on or prior to the close of business on March 17,
2008. In light of the current trading price of Aecon's common shares, it is
anticipated that most, if not all, of the 2010 Debentures will be converted,
in which case up to an additional 4,173,421 common shares of Aecon will be
"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 $6.7 million over the next two years, in turn increasing Aecon's
profitability and significantly mitigating the dilutive effect of the
conversions," Mr. Balfour said.
Aecon previously redeemed on November 2, 2007 the balance outstanding of
its $30,000,000 aggregate principal amount of 8.25% subordinated convertible
debentures due November 2, 2009 that had not been converted by the holders
thereof into common shares of Aecon prior to November 2, 2007.
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. Aecon is pleased to be recognized as one of the 50 Best
Employers in Canada as published by Report on Business Magazine.
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" of Aecon's Annual Information Form 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, email@example.com, www.aecon.com