Stantec Closes $604 Million Bought Deal

Stantec Inc. (USA)

disclosed that it closed bought deal public offering of 17.36 million subscription receipts from treasury at a price of $30.25 a Subscription Receipt. The gross proceeds were $525 million through a syndicate of underwriters that was co-led by CIBC Capital Markets, as well as, RBC Capital Markets. Stantec said that the underwriters have also exercised the option of over-allotment in full to acquire an additional 2.6 million Subscription Receipts on the same returns. As a result, the total gross proceeds from the offering amounted to $604 million. The company indicated that it would use the proceeds of the Equity Financing to fund a portion of the purchase price payable in connection with the acquisition of all of the issued and outstanding capital stock of MWH Global as announced earlier. The company said that the rest of acquisition price and the related transaction costs would be funded through the new credit facilities as announced earlier. Shares of Stantec shed 1.08% on Wednesday closing.