SNC-Lavalin Group Inc. announced that it has priced an offering of $300 million aggregate principal amount of 7.0% Series 7 unsecured debentures due June 12, 2026. The Series 7 Debentures are being offered through a syndicate of agents led by BMO Capital Markets, CIBC Capital Markets, National Bank Financial Markets, and Scotia Capital Inc. as joint bookrunners, and which also includes RBC Dominion Securities Inc., TD Securities Inc., BNP Paribas (Canada) Securities Inc., HSBC Securities (Canada) Inc., BofA Securities, SMBC Nikko, Citigroup Global Markets Canada Inc., and Desjardins Securities Inc. The Series 7 Debentures will be issued at par and closing is expected to occur on or about December 12, 2022, subject to customary closing conditions. SNC-Lavalin intends to use the net proceeds of the offering to repay existing indebtedness and for general corporate purposes.
The Series 7 Debentures will bear interest at a fixed annual rate of 7.0%, payable in equal semi-annual instalments, in arrears, on June 12 and December 12 of each year until maturity, commencing on June 12, 2023. The Series 7 Debentures will be direct unsecured obligations of SNC-Lavalin, will rank pari passu with all other unsecured and unsubordinated indebtedness of SNC-Lavalin (including all of its other existing debentures as well as indebtedness under its existing main credit agreement) and will be guaranteed by the same subsidiaries that guarantee SNC-Lavalin's obligations under its existing main credit agreement and its other outstanding debentures. The Series 7 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 Series 7 Debentures in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The Series 7 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 Series 7 Debentures in any jurisdiction where it is unlawful to do so.