October 22, 2013
Boyd Group Income Fund Completes Bought Deal Financing totalling C$63,480,000 Underwriters exercise Over-Allotment Option in full
Not for distribution to U.S. newswire services or for dissemination in the United States
Winnipeg, Manitoba - October 22 2013 -
Boyd Group Income Fund (TSX: BYD.UN) (the “Fund,” “Boyd” or the “Boyd Group”) today announced that it has closed its previously announced $55,200,000 Bought Deal Financing (the “Offering”). The Offering was led by National Bank Financial Inc. and Cormark Securities Inc., acting as co-leads and joint bookrunners, and included CIBC World Markets Inc., Laurentian Bank Securities Inc., Scotia Capital Inc. and Octagon Capital Corporation (collectively, the “Underwriters”). Concurrently with the closing, the Underwriters exercised their over-allotment option in full and purchased an additional 300,000 Units at the offering price, which increased the amount of gross proceeds under the Offering to $63,480,000.
The majority of the net proceeds of the Offering will be used to repay unamortized prepaid rebates (unearned income) previously received under paint supply arrangements with the balance to be used 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.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.
The Boyd Group Inc. is the largest operator of non-franchised collision repair centres in North America. 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) email@example.com
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext. 258)firstname.lastname@example.org
Chief Financial Officer
Tel: (204) email@example.comCaution concerning forward-looking statementsStatements 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..
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: ability to successfully complete paint supply arrangement restructuring on an accretive basis; 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.