Shawcor Prices C$150 Million Unsecured Note Offering
02 December 2021 - 11:30PM
Shawcor Ltd. (“Shawcor” or the “Company”) (TSX: SCL) today
announced that it has entered into an underwriting agreement to
sell, pursuant to a private placement offering (the “Offering”),
C$150 million aggregate principal amount of 9.00% senior unsecured
notes due 2026 (the “Notes”). The Notes will be issued at a price
of C$1,000 per C$1,000 principal amount of Notes.
Shawcor will use the net proceeds of the
Offering to repay amounts outstanding under its existing syndicated
credit facility (the “Existing Facility”). Concurrent with issuance
of the Notes, Shawcor will amend the Existing Facility to reduce
the availability under the Existing Facility from US$500 million to
US$300 million and, in the near future, expects to extend its term.
The Company will provide further information in due course.
“We remain focused on strengthening our balance
sheet to provide the financial flexibility required to effectively
manage our business,” said Mike Reeves, Shawcor’s President and
CEO. “This Offering coupled with the anticipated extension of our
Existing Facility will enable greater flexibility and support for
our strategic initiatives and future growth.”
The Notes are being offered through a syndicate
of underwriters led by National Bank Financial and TD
Securities.
The Notes will be offered for sale in Canada to
accredited investors on a private placement basis, in accordance
with Canadian securities laws. The Notes have not been registered
under the U.S. Securities Act, or any state securities laws, and
are being offered and sold in the United States to qualified
institutional buyers only, pursuant to Rule 144A of the U.S.
Securities Act. The Notes may be sold outside of the United States
in accordance with Rule 903 of Regulation S under the U.S.
Securities Act. Subject to customary closing conditions, the
Offering is expected to close in mid-December 2021.
About Shawcor
Shawcor Ltd. is a growth-oriented, global
material sciences company serving the Infrastructure, Energy, and
Transportation markets. The Company operates through a network of
fixed and mobile manufacturing and service facilities. Its three
business segments, Composite Systems, Automotive & Industrial
and Pipeline & Pipe Services enable responsible renewal and
enhancement of critical infrastructure while lowering risk and
environmental impact.
For further information, please contact:
Meghan MacEachernExternal Communications & ESG,
DirectorTelephone: 437.341.1848Email:
meghan.maceachern@shawcor.comshawcor.com
Forward Looking Information
This news release contains forward-looking
information within the meaning of applicable securities laws. Words
such as "may", "will", "should", "anticipate", "plan", "expect",
"believe", "predict", "estimate" or similar terminology are used to
identify forward-looking information. This forward-looking
information is based on assumptions, estimates and analysis made in
the light of the Company's experience and its perception of trends,
current conditions and expected developments, as well as other
factors that are believed by the Company to be reasonable and
relevant in the circumstances. Forward-looking information involves
known and unknown risks, uncertainties and other factors which may
cause actual results, performance or achievements to be materially
different from those predicted, expressed or implied by the
forward-looking information. The forward-looking information is
provided as of the date of this news release and the Company does
not assume any obligation to update or revise the forward-looking
information to reflect new events or circumstances, except as
required by law.
Source: Shawcor Ltd.
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