North American Construction Group Ltd. Announces Offering and Pricing of Reopening of $125 Million Senior Unsecured Notes

Executive Summary

• North American Construction Group Ltd. (NACG) entered into an underwriting agreement to issue an additional $125 million of 7.75% senior unsecured notes due May 1, 2030, increasing total outstanding principal to $350 million.
• The notes will be sold at 103% of face value, yielding a worst‑case yield of 6.778%, and are being offered privately in Canada, the U.S. (to qualified institutional buyers), and offshore under applicable exemptions.
• Net proceeds are earmarked to repay existing credit‑facility indebtedness and for general corporate purposes; closing is expected around October 22, 2025.

Key Details

• Offering Size: $125 million aggregate principal amount (additional to the $225 million issued on May 1, 2025).
• Total Outstanding After Offering: $350 million aggregate principal amount of 7.75% senior unsecured notes.
• Interest Rate: Fixed at 7.75% per annum; yield to worst 6.778%.
• Issue Price: 103% of face value, plus accrued interest from May 1, 2025 to the closing date (excluding the closing date).
• Maturity Date: May 1, 2030 for both the Initial Notes and the additional notes.
• Underwriters / Lead Managers: National Bank Capital Markets (lead), ATB Securities Inc., Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Canaccord Genuity Corp., Raymond James Ltd.
• Use of Proceeds:
• Repayment of indebtedness under existing credit agreement.
• General corporate purposes.
• Closing Date: Expected on or about October 22, 2025, subject to customary conditions.
• Offering Structure: Private placement in Canada pursuant to prospectus exemptions; U.S. sales limited to qualified institutional buyers under Rule 144A; offshore sales under Regulation S.
• Regulatory Notices: Notes not registered under the U.S. Securities Act; offering complies with applicable Canadian and U.S. securities law exemptions.

Notable Quotes

(No executive quotes were included in the release.)