October 7, 2013
Boyd Group Income Fund Files Preliminary Prospectus for Bought Deal Financing of C$55,200,000
Concurrently announces Interim Paint Restructuring with Paint SupplierWinnipeg, Manitoba - October 7, 2013 -
Not for distribution to U.S. newswire services or for dissemination in the United States
Boyd Group Income Fund (TSX: BYD.UN) (the “Fund,” “Boyd” or the “Boyd Group”) today announced that it has filed a preliminary short form prospectus (the “Preliminary Prospectus”) in connection with its previously announced $55,200,000 Bought Deal Financing (the “Offering”).
The Fund had previously announced that it intended to use the majority of the net proceeds of the Offering 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 repayment of the prepaid rebates was contemplated by the Fund as part of a restructuring of its paint supply arrangements from prepaid rebates to back-end purchase discounts.
The Fund today announced that it has signed an amendment of its agreement with its paint supplier. The amendment will allow Boyd to derive the benefit, effective October 1, 2013, of the higher back-end purchase discounts referred to in its previously issued press release, subject to the completion of the Offering on or before October 31, 2013. As a result of this amendment, the Fund expects to realize on the accretive nature of this restructured arrangement beginning in its fourth quarter of 2013. The amendment is in effect for a period to January 31, 2014 while Boyd and its paint supplier negotiate a final agreement setting forth the complete terms of the arrangement. During this interim period, Boyd will also validate the market competitiveness of the back-end discount. The terms of the amendment require the Fund to repay the unamortized prepaid rebates once the Offering has been completed.
This news release does not constitute an offer of securities for sale in the United States. 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.About The Boyd Group Income Fund
The Boyd Group Income Fund (http://www.boydgroup.com
) is an unincorporated, open-ended mutual fund trust created for the purposes of acquiring and holding certain investments, including a majority interest in The Boyd Group Inc. and its subsidiaries. The Units trade on the Toronto Stock Exchange (TSX) under the symbol BYD.UN.About The Boyd Group Inc.
In terms of locations, The Boyd Group Inc. is the largest operator of non-franchised collision repair centres in North America and one of the largest in terms of sales. The Company operates locations in five Canadian provinces under the trade name Boyd Autobody & Glass (http://www.boydautobody.com), as well as in 15 U.S. states under the trade names Gerber Collision & Glass (http://www.gerbercollision.com), Autocrafters Collision and Hansen Collision and Glass. The Company is also a major retail auto glass operator in the U.S. with locations across 28 U.S. states under the trade names Gerber Collision & Glass, Glass America, Auto Glass Services, Auto Glass Authority and S&L Glass. The Company also operates Gerber National Glass Services, an auto glass repair and replacement referral business with approximately 3,000 affiliated service providers throughout the United States.For further information, please contact:
President & CEO
Tel: (204) firstname.lastname@example.org
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 258)email@example.com
Chief Financial Officer
Tel: (204) firstname.lastname@example.orgCaution concerning forward-looking statements
Statements made in this press release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like “may”, “will”, “forecast”, “anticipate”, “estimate”, “expect”, “intend”, or “continue” or the negative thereof or similar variations. Forward looking statements in this press release include the likelihood of the restructuring of the paint supply arrangements and the Offering being completed on the stated terms or at all and the accretive nature of the stated market-driven, back-end paint purchase discounts to the Fund’s earnings and cash flows.
Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: dependence upon The Boyd Group Inc. and its Subsidiaries; cash distributions not guaranteed; inability to successfully integrate acquisitions; economic downturn; operational performance; rapid growth; loss of key customers; brand management and reputation; insurance risk; quality of corporate governance; tax position risk; risk of litigation; acquisition risk; credit & refinancing risks; dependence on key personnel; employee relations; decline in number of insurance claims; market environment change; reliance on technology; weather conditions; expansion into new markets; fluctuations in operating results and seasonality; increased government regulation and tax risk; execution on new strategies; operating hazards; energy costs; U.S. health care costs and workers compensation claims; low capture rates; key supplier relationships; capital expenditures; competition; potential undisclosed liabilities associated with acquisitions; foreign currency risk; ability to successfully integrate acquisitions and realize synergies; regulatory risks; margin pressure; acquisition and start-up growth and ongoing access to capital; environmental, health and safety risk; interest rates; and the Fund’s success in anticipating and managing the foregoing risks.
We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the “Risk Factors” section of the Fund’s Annual Information Form, the “Risks and Uncertainties” and other sections of our Management’s Discussion and Analysis of Operating Results and Financial Position and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings. All forward-looking statements are made as of this date and the Fund assumes no obligation to update such statements.