Magna International Inc. today announced that it has entered into an underwriting agreement providing for the issuance of U.S.$750 million aggregate principal amount of its senior unsecured notes pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission (the “SEC”) and a short form base shelf prospectus and prospectus supplement filed with the Ontario Securities Commission.
The notes will bear interest at an annual rate of 2.450% and will mature on June 15, 2030. The offering is expected to close on June 15, 2020, 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 acquisitions.
BofA Securities, Inc., Citigroup Global Markets Inc. and TD Securities (USA) LLC are acting as joint book-running managers for the offering.
The notes are not being qualified for distribution in Canada but will be offered in Canada on a private placement basis.
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 state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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SOURCE: Magna