Boyd Group Services announces $780M bought deal initial public offering

Boyd Group Services (BGSI) (BYDGF) announced that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets, CIBC Capital Markets, National Bank Capital Markets and TD Securities pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 5.53M common shares of BGSI at a price of $141.00 per share, for gross proceeds of approximately $780M. The common shares will be offered to the public in Canada and the United States, representing BGSI’s initial public offering in the United States. In connection with the initial public offering in the United States, BGSI has been approved to list its common shares on the NYSE under the symbol “BGSI”. Trading of BGSI’s common shares is expected to commence on the NYSE on October 31. BGSI’s common shares will continue to trade on the Toronto Stock Exchange under the symbol “BYD”. BGSI intends to use the net proceeds from the offering to partially fund the acquisition of Joe Hudson’s Collision Center, a provider of automotive collision repair services. The offering is expected to close on or about November 4, subject to customary closing conditions. The closing of the offering is not conditional on closing of the acquisition. If the acquisition is not completed, BGSI will use the net proceeds from the offering to reduce its outstanding indebtedness and finance future growth opportunities including acquisitions, or for other general corporate purposes.