Boralex Inc. (“Boralex” or the “Corporation”) (TSX: BLX) is pleased to announce that it has entered into an agreement with National Bank Financial Inc., acting as sole bookrunner, on behalf of a syndicate of underwriters to include CIBC World Markets Inc., RBC Dominion Securities Inc. and TD Securities Inc., acting as co-lead underwriters (collectively, the "Underwriters”), pursuant to which Boralex will issue from treasury, and the Underwriters will purchase on a "bought deal" basis, 5,288,000 common shares (“Common Shares”) at a price of $33.10 per Common Share for gross proceeds of approximately $175 million (the “Offering”). The Underwriters have also been granted an option to purchase up to an additional 15% of the Common Shares issued under the Offering at a price of $33.10 per Common Share exercisable in whole or in part at any time for a period of 30 days from the closing of the Offering (the "Over-Allotment Option") for additional gross proceeds of $26.3 million and a total size of the Offering of approximately $201.3 million if fully exercised.
Boralex intends to use the net proceeds of the Offering to repay amounts drawn under its revolving credit facility. 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 Corporation’s ongoing development pipeline and potential future acquisitions. Boralex remains committed to its strategic plan and its 2023 target of reaching 2,800 MW (vs. 2,055 MW today) and believes that the Offering will position the Corporation with increased financial flexibility to meet its growth objectives in the current market environment.
The Common Shares issued pursuant to the Offering and Over-Allotment Option will be offered in all provinces of Canada by way of a short form prospectus to be filed by the Corporation.
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 August 28, 2020.
Copies of the short form prospectus and the underwriting agreement will be available on SEDAR (www.sedar.com) as part of the public filings of Boralex.