December 19, 2012
Boyd Group Income Fund Announces Closing of $30 Million Bought Deal Financing of Convertible Debentures
Not for distribution to U.S. newswire services or for dissemination in the United StatesWinnipeg, Manitoba — December 19, 2012
— Boyd Group Income Fund (TSX: BYD.UN) (“the Fund,” “Boyd” or “the Boyd Group”) today announced that it has closed its previously announced bought deal offering (the “Offering”) of five year 5.75% convertible unsecured subordinated debentures due December 31, 2017 (the “Debentures”). The Offering was led by National Bank Financial Inc., Cormark Securities Inc., and CIBC World Markets Inc., acting as co-leads and joint bookrunners, and included Laurentian Bank Securities Inc., and Octagon Capital Corp. (collectively, the “Underwriters”).
The Underwriters also received the option, exercisable in whole or in part at any time up to 30 days after the closing of the Offering, to purchase up to an additional $4,500,000 aggregate principal amount of Debentures for market stabilization purposes and to cover overallotments, if any.
The net proceeds of the Offering will be principally used to replenish the cash balances of the Fund following its previously announced acquisitions of Autocrafters and The Recovery Room as well as to fund ongoing growth for 2013, with the remainder being used for general working capital purposes. About The Boyd Group Inc.
The Boyd Group Inc. is the largest operator of collision repair centres in North America. The Company operates locations in the four Western Canadian provinces under the trade name Boyd Autobody & Glass(http://www.boydautobody.com
), as well as in 14 U.S. states under the trade names Gerber Collision & Glass (http://www.gerbercollision.com
), Pearl Auto Body, Autocrafters Collision Repair and The Recovery Room. 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 more information on The Boyd Group Inc. or Boyd Group Income Fund, please visit our website at http://www.boydgroup.com
.About The Boyd Group Income Fund
The Boyd Group Income Fund 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 Boyd Group Income Fund units trade on the Toronto Stock Exchange (TSX) under the symbol BYD.UN.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. 242)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 Acquisition and the Offering being completed on the stated terms or at all and the accretive nature of the Acquisition 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.