Boyd Group announces bought deal financing for gross proceeds of $55.2 million

Winnipeg, Manitoba — October 1, 2013 — Boyd Group Income Fund has entered into an agreement with National Bank Financial to issue 2 million trust units from treasury. The units will be purchased on a “bought-deal” basis by a syndicate of underwriters consisting of National Bank Financial and Cormark Securities, acting as co-leads and joint bookrunners, and including CIBC World Markets Inc., Laurentian Bank Securities, Scotia Capital and Octagon Capital. The units will be offered to the public by way of a short form prospectus at a price of $27.60 per Unit, for gross proceeds to the Fund of $55.2 million.

According to a statement from Boyd Group, the Fund intends to use the net proceeds of the offering principally to repay unamortized prepaid rebates (unearned income) previously received under paint supply arrangements and used as funding for acquisitions and start-ups, as well as for general corporate purposes. The Fund would be repaying the prepaid rebates as part of a restructuring of its paint supply arrangements from prepaid rebates to back-end purchase discounts.
“Prepaid rebates from our paint supply partner have been an important component of our growth strategy to date. However, given our current size, purchasing scale and access to capital, combined with changing paint market conditions, we have now assessed that moving to higher, market-driven, back-end purchase discounts will be to our advantage and very accretive to our unitholders,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “In addition, repayment with equity proceeds will further strengthen our balance sheet and position us extremely well to continue to execute on our growth strategy.”
The Fund has also granted to the underwriters an over-allotment option to purchase up to 300,000 additional units, representing 15 percent of the size of the offering. The over-allotment option may be exercised until 30 days following the closing of the offering.
The Fund expects to file a preliminary short form prospectus relating to the offering on October 7, 2013. Closing of the offering is expected to occur on or about October 22, 2013. The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange. The units will be offered in each of the provinces of Canada, excluding Quebec. If units are offered in the U.S., it will be by way of private placement in accordance with applicable registration exemptions. The securities being offered have not been, nor will they be, registered under the Unites States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
For more information, please visit boydgroup.com

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