AURORA, Ont., March 7, 2023 (GLOBE NEWSWIRE) — Magna International Inc. MGMGA announced today that it has entered into underwriting agreements relating to the offering of two series of US dollar-denominated senior notes (“US Dollar Senior Notes“) and a Series of Euro-denominated Senior Notes (“Euro Senior Notes“), as follows:
| nominal amount | maturity | annual interest rate | |
| US Dollar Senior Notes | |||
| Series $1 | $300,000,000 | March 21, 2026 | 5.980% |
| Series 2 dollars | $500,000,000 | March 21, 2033 | 5,500% |
| Euro Senior Notes | €550,000,000 | March 17, 2032 | 4.375% |
Magna intends to use the net proceeds from the offering of US dollar senior notes to fund a portion of the cost of its proposed acquisition of the Veoneer Active Safety business (the “Acquisition of Veoneer“) and to pay related fees and expenses, and for general corporate purposes, including the repayment of existing debt. However, the completion of this Offer is not conditional on the completion of the Veoneer Acquisition. In the event that (x ) the acquisition of Veoneer does not occur on or before December 19, 2023 or any later date because the Parties (the “Equity Purchase Agreement“) governing the Veoneer Acquisition may be agreed upon as an “End Date” (the “End Date”), or (y) the Equity Purchase Agreement is terminated, Magna shall redeem all then outstanding Notes at an equal redemption price of 101% of the principal amount of the Notes plus accrued and unpaid interest, if any, up to the (exclusive) Redemption Date.
Magna intends to use the net proceeds from the Senior Euro Notes for general corporate purposes, which may include repaying existing debt.
The Offering of Senior US Dollar Notes is expected to close on March 21, 2023 and the Offering of Senior Euro Notes is expected to close on March 17, 2023, each subject to customary closing conditions. The US Dollar Senior Notes and Euro…
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