As the COVID-19 market continues, volatility remains even as buyer panic slowly begins to subside. Meanwhile, we've got the three biggest financings from the past week, with deals from Boyd Group Services Inc. (TSX: BYD), MAG Silver Corp. (TSX: MAG), and Alphamin Resources Corp (TSX-V: AFM).
1. Boyd Group Services Inc. (TSX: BYD)
- Gross Proceeds: $200 million (bought deal)
- Sector: Collision repair
- Units issued: 1.1 million
- Type: Common shares
- Price: $183.00
- Agents: CIBC Capital Markets, Cormark Securities Inc., Goldman Sachs, National Bank Financial Inc.
- Use of Proceeds:
- Link to the press release
Auto collision repair business operator Boyd Group Services announced a $200 million bought deal financing on Tuesday to fund potential acquisitions during the COVID-19 crisis.
The company will issue 1.1 million common shares at $183.00 each, about a 5% discount from its current share price, to a syndicate of underwriters co-led by CIBC Capital Markets, Cormark Securities Inc., Goldman Sachs, and National Bank Financial Inc. It has also granted the underwriters an over-allotment option to purchase up to an additional 165,000 shares at the same price.
“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 Boyd CEO Tim O'Day in the release.
The release piggybacked on the company's Q1 financial results, in which the company reported a 4% year-over-year increase in adjusted EBITDA to $81.4 million, a 28.3% decrease in adjusted net earnings to $20.2 million, or $1.00 per share.
Since the announcement, Boyd shares have increased by 4.5% to $193.44.
2. MAG Silver Corp (TSX: MAG)
- Gross Proceeds: $60 million
- Sector: Mining
- Units issued: 4.53 million
- Type: Common shares
- Price: $13.25
- Agents: Non-brokered
- Use of Proceeds: Project development
- Link to the press release
MAG Silver announced a $60 million non-brokered private placement with billionaire Eric Sprott on Monday The company will issue 4.53 million common shares at 13.25 each, with proceeds going toward the ongoing exploration and development of its Juanicipio project in Zacatecas, Mexico.
Since announcing the investment from Eric Sprott, shares of MAG have jumped $2.49 or 18.27% to $16.12 per share. Read more about the company and the offering in our full article here.
3. Alphamin Resources Corp (TSX-V: AFM)
- Gross Proceeds: $49.35 million
- Sector: Tin mining
- Units issued: 352.5 million
- Type: Common shares
- Price: CA$0.14 per share
- Agents: Non-brokered
- Use of Proceeds: Reduce debt
- Link to the press release
Tin miner Alphamin Resources announced a non-brokered private placement for up to US$35 million as a prepayment against US$98 million of senior unsecured debt.
The company will issue between 302.1 million and 352.5 million common shares at 14 cents, subscribed in part by Tremont Master Holdings, a 48.6% shareholder of Alphamin.
Aphamin produced 2,119 tonnes of tin in Q1 2020, right in line with its guidance, and previously projected 2,400-2,600 more in Q2, though COVID-19's impact on that plan remains to be seen. The company has been exploring and developing the Mpama North mine in the Democratic Republic of the Congo, which it calls the world's highest grade tin mine.
Since announcing the financing, shares of Alphamin have dropped 3 cents to 12.5 cents per share, down 4.5 cents year-to-date.
