North American Construction Group Ltd. (NACG) announced today, October 8 2025, that it has entered into an underwriting agreement with a syndicate of underwriters to sell an additional $125 million aggregate principal amount of its 7.75% senior unsecured notes due May 1 2030. The notes will be issued at 103 % of face value, with a yield to worst of 6.778 %, and will be fungible with the $225 million of notes issued on May 1 2025.
The company intends to use the net proceeds of the offering to repay indebtedness under its existing credit agreement and for general corporate purposes. This financing move is designed to strengthen NACG’s balance sheet and provide flexibility for future capital allocation decisions.
Following the closing of the offering, the total outstanding senior unsecured notes will amount to $350 million, comprising the original $225 million and the new $125 million. The offering is expected to close on or about October 22 2025, subject to customary closing conditions.
The issuance expands NACG’s debt capacity while maintaining the same series and terms as the initial notes, allowing the company to manage its debt profile more efficiently and support ongoing operations and growth initiatives.
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