Key Takeaways:
Badger Infrastructure Solutions Ltd. has closed a C$300 million private placement offering, using the new capital to refinance existing debt and solidify its balance sheet ahead of future growth investments. The deal, the company's first-ever note offering, locks in a fixed interest rate of 5.375 percent on the senior unsecured notes until their maturity on May 14, 2031.
"We are very pleased with the strong support from our new Canadian fixed income investors in our inaugural note offering," Rob Dawson, Badger's Chief Financial Officer, said. "With this successful financing complete, Badger remains well positioned to continue its strategy of investing for growth while maintaining a strong balance sheet."
The offering was underwritten by a syndicate of underwriters led by CIBC World Markets Inc. and TD Securities Inc., who acted as joint bookrunners. Norton Rose Fulbright Canada LLP provided legal counsel to Badger. The notes were offered in Canada on a private placement basis and have not been registered under the U.S. Securities Act.
By using the proceeds to repay outstanding amounts on its credit facilities, Badger is exchanging variable-rate debt for a long-term, fixed-rate obligation. This move reduces the company's exposure to interest rate fluctuations and provides greater certainty over its future borrowing costs. The refinancing is a key step in managing the company's capital structure as it continues to serve construction, utility, and transportation markets with its non-destructive excavation services.
Badger is North America’s largest provider of non-destructive excavation, primarily using its proprietary Badger Hydrovac™ system. This system uses a pressurized water stream and a powerful vacuum to safely excavate soil around sensitive underground infrastructure like power, gas, and sewer lines. The company designs and manufactures its own fleet of Hydrovac trucks at a facility in Red Deer, Alberta.
This article is for informational purposes only and does not constitute investment advice.
