Boyd Group Services Inc. (Boyd) recently announced it has entered into an agreement with CIBC Capital Markets, Cormark Securities Inc., Goldman Sachs and National Bank Financial Inc., and joint bookrunners, on behalf of a syndicate of underwriters (collectively, the Underwriters). According to Boyd, it will issue from treasury, and the Underwriters shall purchase on a “bought-deal” basis, 1,100,000 common shares at a price of $183.00 per share.
Boyd intends to use the net proceeds of the offering to fund potential future acquisition opportunities post COVID-19, as well as to further strengthen its balance sheet through either holding cash or debt repayment, and for general corporate purposes.
“We believe there will be many opportunities that come from this crisis, both internal and external, and our strong balance sheet, which will be further strengthened by this financing, will put us in the best possible position to come out of this crisis as a stronger company,” said Tim O’Day, Boyd president and CEO.
According to the company’s previewed report, its sales increased by 12.6% to $628.4 million from $557.9 million when compared to 2019. The company’s net earnings increased 5.9% to $22.7 million, when compared with $21.4 million in the same period last year.
“Our team has undertaken proactive steps to adapt to the current environment, and to maintain our strong financial position,” said O’Day. “We have ample liquidity and we have been able to adjust our business to manage through this challenging situation, while also preparing to ramp back up as the demand for collision repair services begins to rise.”