Seven year old Darcy McCain is helped onto a school bus by his mother Mary as he prepares for the first day back after the summer holidays on Tuesday September 3, 2013.Chris Young/The Globe and Mail
Bombardier Inc. wasn't the only Canadian company Thursday to announce a bought deal. Barrie, Ont.-based school bus company Student Transportation Inc. announced it has sold 10.4 million shares to a syndicate led by Scotia Capital Inc. and National Bank Financial at $7.20 per share for aggregate gross proceeds of $75-million. If the underwriters exercise their over-allotment option, that will mean another $11.2-million in gross proceeds for the company.
The share price of the acquisitive transportation company, which has operations and stock listings in both Canada and the U.S., has been on the rise of late. Last week the company reported second-quarter earnings of $3.5-million, or 4 cents a share, on revenue of $157.5-million, exceeding analyst expectations. The company said it will use the proceeds of the offering to repay debt – which stood at $315.6-million as of Dec .31 – and for general corporate purposes.
Sean Silcoff