Boralex is to issue shares on a ‘bought deal’ basis to raise $175m to repay money drawn from its revolving credit facility that is used for new investments, among other things.
The Canadian renewables developer has entered into an agreement with National Bank Financial to act as sole bookrunner, on behalf of a syndicate of underwriters including CIBC World Markets, RBC Dominion Securities and TD Securities.
Boralex will issue from treasury, and the underwriters will purchase 5,288,000 common shares at a price of $33.10 a share.
The underwriters have also been granted an option to purchase up to an additional 15% of the common shares issued under the offering at the same price, exercisable in whole or in part at any time for a period of 30 days from the closing of the offering.
This would deliver additional gross proceeds of $26.3m and a total size of the offering would be approximately $201.3m if fully exercised.
The amounts repaid under the revolving credit facility are expected to be redrawn as and when needed for working capital and general corporate purposes, and to fund the company’s ongoing development pipeline and potential future acquisitions.
Closing of the offering is subject to customary conditions including the approval of applicable securities regulatory authorities and the Toronto Stock Exchange.
The offering is expected to close on or about 28 August.