ShawCor announces US$ 200 million offering of common shares

ShawCor Ltd. has agreed to sell, on a bought deal basis, 3 650 000 common shares at a price of US$ 54.85 per common share (the Issue Price) for gross proceeds of US$ 200 202 500 (the Offering). 

The common shares will be offered through a syndicate of underwriters led by TD Securities Inc. ShawCor has also granted the underwriters an option to purchase, in whole or part, up to an additional 547 500 common shares at the Issue Price to cover over-allotments, if any, for a period of 30 days following the closing of the Offering. If the over-allotment option is exercised in full, gross proceeds from the Offering will be US$ 230 232 875.

ShawCor will use the net proceeds of the Offering for general corporate purposes, including to repay a portion of its outstanding revolving debt in the normal course in order to create debt availability to fund future corporate investments, which may potentially include future acquisitions.

The common shares will be offered in all provinces of Canada (excluding Quebec) by way of a supplement to the Company's base shelf prospectus dated June 16, 2014. The offering is subject to the receipt of all necessary regulatory and stock exchange approvals and customary closing conditions. Closing of the Offering is expected to occur on or about September 19, 2014.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/11092014/shawcor-announces-us-200-million-offering-of-common-shares/