Stella-Jones Announces Closing of Secondary Offering of Common Shares by Stella Jones International S.A.
February 21 2018 - 10:04AM
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR DISSEMINATION IN THE UNITED STATES
Stella-Jones Inc. (TSX:SJ) (“Stella-Jones” or the “Company”)
announced today that Stella Jones International S.A. (“SJ
International”), the Company’s principal shareholder, has completed
its previously announced secondary offering pursuant to which SJ
International sold to a syndicate of underwriters, on a bought deal
basis, 5,000,000 common shares of the Company at a price of $48.50
per common share. Following completion of the secondary offering,
SJ International now owns approximately 31.1% of the issued and
outstanding common shares of the Company. The Company did not
receive any proceeds from the secondary offering.
As previously announced, SJ International has
also granted the underwriters an over-allotment option, exercisable
for a period of 30 days following the date hereof, to purchase up
to an additional 750,000 common shares from SJ International, at
the offering price, to cover over-allotments, if any, and for
market stabilization purposes. If the over-allotment option is
exercised in full, SJ International’s ownership interest will be
reduced to approximately 30.0% of the issued and outstanding common
shares of the Company.
The syndicate of underwriters was co-led by
Morgan Stanley Canada Limited and TD Securities Inc., as joint
bookrunners, and also included CIBC World Markets Inc., HSBC
Securities (Canada) Inc. and RBC Dominion Securities Inc.
This news release is not an offer of securities
for sale in the United States. The securities being offered have
not been and will not be registered under the United States
Securities Act of 1933, as amended, and accordingly are not being
offered for sale and may not be offered, sold or delivered,
directly or indirectly within the United States, its possessions
and other areas subject to its jurisdiction, except pursuant to an
exemption from the registration requirements of that Act.
ABOUT STELLA-JONESStella-Jones
Inc. (TSX:SJ) is a leading producer and marketer of pressure
treated wood products. The Company supplies North America’s
railroad operators with railway ties and timbers, and the
continent’s electrical utilities and telecommunication companies
with utility poles. Stella-Jones also manufactures and distributes
residential lumber and accessories to retailers for outdoor
applications, as well as industrial products for construction and
marine applications. The Company’s common shares are listed on the
Toronto Stock Exchange.
This press release may contain information and
statements of a forward-looking nature. These statements are based
on suppositions and uncertainties as well as on management’s best
possible evaluation of future events. Such factors may include,
without excluding other considerations, fluctuations in quarterly
results, evolution in customer demand for the Company’s products
and services, the impact of price pressures exerted by competitors,
the ability of the Company to raise the capital required for
acquisitions, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from
expected results.
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Source: |
Stella-Jones
Inc. |
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Contacts: |
Éric Vachon,
CPA, CA |
Pierre Boucher,
CPA, CMA |
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Senior Vice-President
and Chief Financial Officer |
MaisonBrison
Communications |
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Tel.: (514)
940-3903 |
Tel.: (514)
731-0000 |
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evachon@stella-jones.com |
pierre@maisonbrison.com |
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