Stantec Announces Private Offering of $250 Million Senior Unsecured Notes
June 20 2023 - 4:44PM
TSX, NYSE:STN
Global engineering and design firm Stantec Inc.
("Stantec") today announced that it has priced a private placement
offering (the "Offering") of $250 million aggregate principal
amount of 5.393% senior unsecured notes due June 27, 2030, (the
"Notes"). The Offering is expected to close on or about June 27,
2023, subject to customary closing conditions. Stantec intends to
use the net proceeds of the Offering to repay existing indebtedness
and for general corporate purposes.
The Notes will be issued at par for aggregate
gross proceeds of $250 million and will bear interest at a fixed
rate of 5.393% per annum, payable semi-annually on the 27th of June
and December of each year, commencing on December 27, 2023.
The notes will be direct senior unsecured
obligations of Stantec and will rank pari passu with all of
Stantec's existing and future senior unsecured indebtedness and
senior in right of payment to any future subordinated indebtedness
of Stantec. The Notes have been assigned a provisional rating of
BBB, with a stable trend, by DBRS Limited (DBRS Morningstar), and
are being offered in Canada on a private placement basis in
reliance upon exemptions from the prospectus requirements under
applicable securities legislation.
The Notes have not been and will not be
qualified for sale to the public under applicable securities laws
in Canada and, accordingly, any offer and sale of the Notes in
Canada will be made on a basis which is exempt from the prospectus
requirements of such securities laws. The Notes have not been and
will not be registered under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”), or the securities
laws of any other jurisdiction, and may not be offered or sold in
the United States or to, or for the account or benefit of, U.S.
persons (as such term is defined in Regulation S under the U.S.
Securities Act). This news release shall not constitute an offer to
sell or the solicitation of an offer to buy, any security, nor
shall there be any offer to sell or a solicitation of an offer to
buy the Notes in any jurisdiction where it is unlawful to do
so.
Cautionary Note Regarding Forward-Looking
Statements
This news release contains forward-looking
statements which include statements about the size and terms of the
proposed Offering of Notes, the timing and completion of the
Offering, the expected use of the net proceeds of the Offering and
any other future events or developments described herein.
Forward-looking statements also include any other statements that
do not refer to historical facts.
By their nature, forward-looking statements are
based on assumptions and factors including, without limitation:
historical trends, current and future economic and financial
conditions, and expected future developments. Stantec believes such
assumptions and factors are reasonably accurate at the time of
preparing this news release. However, forward-looking statements
are not guarantees of future performance and are subject to
inherent risks and uncertainties which could cause future results
to differ materially from the forward-looking statements made in
this news release. Such risks and uncertainties include, but are
not limited to, the disclosure contained under the heading "Risk
Factors" in Stantec's management discussion and analysis for the
year ended December 31, 2022 (the "MD&A") and for the three
months ended March 31, 2023 (the "Q1 MD&A"), and in Stantec's
other continuous disclosure filings. The MD&A and Q1 MD&A
are available by accessing Stantec's profile on SEDAR at
www.sedar.com. There is a specific risk that the Offering described
above may be delayed, cancelled, suspended or terminated.
Any forward-looking statements are made as of
the date hereof and, except as may be required by law, Stantec
undertakes no obligation to publicly update or revise any
forward-looking statements. Forward-looking statements are provided
herein for the purpose of giving information about the Offering
referred to above and its expected impact. Readers are cautioned
that such information may not be appropriate for other purposes.
Readers should not place undue reliance on forward-looking
statements made in this news release, which are expressly qualified
by this cautionary statement.
About Stantec
Communities are fundamental. Whether around the
corner or across the globe, they provide a foundation, a sense of
place and of belonging. That's why at Stantec, we always
design with community in mind.
We care about the communities we serve—because
they're our communities too. This allows us to assess what's needed
and connect our expertise, to appreciate nuances and envision
what's never been considered, to bring together diverse
perspectives so we can collaborate toward a shared success.
We're designers, engineers, scientists, and
project managers, innovating together at the intersection of
community, creativity, and client relationships. Balancing these
priorities results in projects that advance the quality of life in
communities across the globe.
Stantec trades on the TSX and the NYSE under the
symbol STN. Visit us at stantec.com or find us on social media.
For further information:
Investor ContactJess NieukerkStantec Investor
RelationsPh: (403) 569-5389jess.nieukerk@stantec.com
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Design with community in mind
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