Opérations et transactions|21 décembre 2004
STA and STA ULC complete C$127 million IPO of income participating securities
Torys acted as counsel to the underwriters with a team that included Kevin Morris, Adam Armstrong and Andrea Unikowsky (corporate/securities) and Corrado Cardarelli and Ann Marie McGovern (tax) in Toronto; and Darren Baccus (corporate/securities) and Peter Keenan and Gregg Larson (tax) in New York.
On December 21, 2004, Student Transportation of America Ltd. (STA) and Student Transportation of America ULC (STA ULC) completed an initial public offering of 11,604,140 income participating securities (IPSs). After the over-allotment option was exercised on January 7, 2005 for an additional 1,160,414 IPSs, the total gross proceeds of the offering were C$127,645,540. This was the first income securities IPO in Canada where the issuer comprised two separate companies (STA and STA ULC, collectively, the issuer).
In connection with the closing of the offering, STA ULC also completed a private placement of C$10 million aggregate principal amount of separate subordinated notes to the Caisse de dépôt et placement du Québec.
The issuer used the proceeds of the offering, together with the proceeds from the separate sale of subordinated notes, to acquire Student Transportation of America Holdings, Inc., which, together with its subsidiaries, is a leading provider of school bus transportation services in the United States.
The IPS structure is designed for Canadian investors and provides monthly distributions, similar to those provided by income funds, in the form of dividends on the common share component of each IPS and interest on the note component of each IPS.
The offering was underwritten by a syndicate of underwriters led by BMO Nesbitt Burns and including CIBC World Markets, RBC Dominion Securities, GMP Securities and Scotia Capital.
In connection with the closing of the offering, STA ULC also completed a private placement of C$10 million aggregate principal amount of separate subordinated notes to the Caisse de dépôt et placement du Québec.
The issuer used the proceeds of the offering, together with the proceeds from the separate sale of subordinated notes, to acquire Student Transportation of America Holdings, Inc., which, together with its subsidiaries, is a leading provider of school bus transportation services in the United States.
The IPS structure is designed for Canadian investors and provides monthly distributions, similar to those provided by income funds, in the form of dividends on the common share component of each IPS and interest on the note component of each IPS.
The offering was underwritten by a syndicate of underwriters led by BMO Nesbitt Burns and including CIBC World Markets, RBC Dominion Securities, GMP Securities and Scotia Capital.