N.A. Construction closes $125-million note offering

Executive Summary

• North American Construction Group Ltd. has closed a private placement offering of an additional $125 million in aggregate principal amount of its 7.75% senior unsecured notes due May 1, 2030.
• This issuance brings the total outstanding principal amount of these notes to $350 million, combining this new tranche with the $225 million issued on May 1, 2025.
• The proceeds from this offering are designated for the repayment of existing credit agreement indebtedness and general corporate purposes.

Key Details

• Transaction Type: Private placement offering of senior unsecured notes.
• Principal Amount: $125 million aggregate principal amount.
• Interest Rate: 7.75% per annum.
• Maturity Date: May 1, 2030.
• Total Outstanding Notes: $350 million aggregate principal amount (comprising the initial $225 million issued on May 1, 2025, and the new $125 million issuance).
• Terms: The new notes have identical terms to the initial notes, except for the issuance date, issuance price, and initial interest accrual date; they are fungible following the expiry of the statutory hold period.
• Use of Proceeds: Repayment of indebtedness under the existing credit agreement and for general corporate purposes.
• Underwriters: National Bank Capital Markets, ATB Securities Inc., Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Canaccord Genuity Corp., and Raymond James Ltd.