MONTREAL, Nov. 21, 2017 /CNW Telbec/ - SNC-Lavalin Group
Inc. (TSX: SNC) ("SNC-Lavalin" or the "Corporation") announced
today that it has priced an offering of $300
million aggregate principal amount of 2.689% series 1
unsecured debentures due November 24,
2020 (the "Debentures"). The Debentures are being offered
through a syndicate of agents led by CIBC World Markets, BMO
Capital Markets and National Bank Financial Markets, as joint
bookrunners and co-lead private placement agents, and also
including RBC Capital Markets, Scotiabank, TD Securities, HSBC
Securities and Desjardins Securities. The Debentures will be issued
at par for aggregate gross proceeds of $300
million. The offering is expected to close on or about
November 24, 2017, subject to
customary closing conditions. SNC-Lavalin intends to use the net
proceeds of the offering to repay certain indebtedness outstanding
under its existing main credit agreement and for general corporate
purposes.
The Debentures will bear interest at a fixed annual rate of
2.689%, payable in equal semi-annual instalments over the 3-year
term. The Debentures will be direct unsecured obligations of
SNC-Lavalin, will rank pari passu with all other unsecured
and unsubordinated indebtedness of SNC-Lavalin (including its
existing 6.19% debentures due July
2019 and indebtedness under its existing main credit
agreement) and, within 60 days of the closing of the offering, will
become guaranteed by the same subsidiaries that guarantee
SNC-Lavalin's obligations under its existing main credit agreement.
Concurrently with the provision of the subsidiary guarantees under
these new Debentures, SNC-Lavalin will also be causing the same
subsidiaries to provide guarantees under its existing 6.19%
debentures due July 2019.
The Debentures have been assigned a provisional rating of BBB,
with a stable trend, by DBRS Limited and BBB, with a stable outlook
from Standard & Poor's, and are being offered in Canada on a private placement basis in
reliance upon exemptions from the prospectus requirements under
applicable securities legislation.
The Debentures have not been and will not be qualified for sale
to the public under applicable securities laws in Canada and, accordingly, any offer and sale of
the Debentures in Canada will be
made on a basis which is exempt from the prospectus requirements of
such securities laws. The Debentures have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the U.S. Securities Act), or the securities laws of any
other jurisdiction, and may not be offered or sold in the United States absent registration under,
or an applicable exemption from the registration requirements of,
the U.S. Securities Act. This news release shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall
there be any offer to sell or a solicitation of an offer to buy the
Debentures in any jurisdiction where it is unlawful to do
so.
About SNC-Lavalin
Founded in 1911, SNC-Lavalin is a global fully integrated
professional services and project management company and a major
player in the ownership of infrastructure. From offices around the
world, SNC-Lavalin's employees are proud to build what matters. Our
teams provide comprehensive end-to-end project solutions –
including capital investment, consulting, design, engineering,
construction, sustaining capital and operations and maintenance –
to clients in oil and gas, mining and metallurgy, infrastructure
and power. On July 3, 2017,
SNC-Lavalin acquired Atkins, one of the world's most respected
design, engineering and project management consultancies.
Forward-Looking Statements
Statements made in this news release that describe the
Corporation's or management's budgets, estimates, expectations,
forecasts, objectives, predictions, projections of the future or
strategies may be "forward-looking statements", which can be
identified by the use of the conditional or forward-looking
terminology such as "aims", "anticipates", "assumes", "believes",
"cost savings", "estimates", "expects", "goal", "intends", "may",
"plans", "projects", "should", "synergies", "target", "vision",
"will", or the negative thereof or other variations thereon.
Forward-looking statements also include any other statements that
do not refer to historical facts. Forward-looking statements also
include statements relating to the following: i) future capital
expenditures, revenues, expenses, earnings, economic performance,
indebtedness, financial condition, losses and future prospects; and
ii) business and management strategies and the expansion and growth
of the Corporation's operations. Specific forward-looking
statements in this news release, include, but are not limited to,
statements with respect to the offering of Debentures and the
intended timing and use of proceeds thereof, and with respect to
the credit ratings assigned to the Debentures.
All such forward-looking statements are made pursuant to the
"safe-harbour" provisions of applicable Canadian Securities Laws.
Forward-looking statements made in this news release are based on a
number of assumptions. The Corporation cautions that, by their
nature, forward-looking statements involve risks and uncertainties,
and that its actual actions and/or results could differ materially
from those expressed or implied in such forward-looking statements,
or could affect the extent to which a particular projection
materializes. Forward-looking statements are presented for the
purpose of assisting investors and others in understanding certain
key elements of the Corporation's current objectives, strategic
priorities, expectations and plans, and in obtaining a better
understanding of the Corporation's business and anticipated
operating environment. Readers are cautioned that such information
may not be appropriate for other purposes.
The forward-looking statements contained in this news release
are expressly qualified in their entirety by the foregoing
cautionary statements. The forward-looking statements herein
reflect the Corporation's expectations as at the date of this news
release and are subject to change after such date. The Corporation
does not undertake to update publicly or to revise any such
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by applicable
legislation or regulation.
SOURCE SNC-Lavalin