Underwriters exercise Over-Allotment Option in full
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
WINNIPEG, Oct. 22, 2013 /CNW/ - 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.
Caution 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..
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.
SOURCE Boyd Group Income Fund
