Magna International Inc. (TSX: MG, NYSE: MGA) today announced that it has entered into an agency agreement providing for the issuance, by way of private placement to accredited investors in each of the provinces of Canada, of CAD 425 million aggregate principal amount of its senior unsecured notes.
The notes will bear interest at an annual rate of 3.10% and will mature on December 15, 2022. The offering is expected to close on December 11, 2015, subject to customary closing conditions.
Magna intends to use the net proceeds from the offering for general corporate purposes, which may include capital expenditures and the previously announced acquisition of the Getrag Group of Companies.
RBC Capital Markets, CIBC Capital Markets, Scotiabank and TD Securities, are acting as joint bookrunners for the offering.
This release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities, in any province or jurisdiction in which such an offer, solicitation or sale would be unlawful. The notes have not been and will not be qualified for distribution to the public by prospectus under the securities laws of any province or territory of Canada and will not be registered under the Securities Act of 1933, as amended, or any state securities laws and will not be offered or sold in the United States, nor will they be offered or sold in any country other than Canada.
