Boralex eyes USD 151m from bought-deal share issue

Canadian renewable energy company Boralex Inc (TSE:BLX) can raise around CAD 201.3 million (USD 151.1m/EUR128.8m) from a bought-deal public offering of common stock.

The share sale will support the Canadain firm’s target is to lift to over 2,800 MW its installed power generation capacity by 2023 from 2,055 MW now.

The Quebec-based company has entered into an agreement to issue 5.288 million shares at CAD 33.10 apiece, targeting proceeds of around CAD 175 million. Additionally, the underwriters will be able to subscribe for an additional 15% of shares at the same offering price within 30 days of the transaction’s closing. If exercised in full, this option will bring Boralex a further CAD 26.3 million.

Boralex intends to use the raised funds to repay amounts drawn under its revolving credit facility. Those sums will be redrawn to support the company’s working capital and general corporate needs and to finance its ongoing development projects and future acquisitions.

National Bank Financial Inc is the sole bookrunner for the offering, while the syndicate of underwriters also includes CIBC World Markets Inc, RBC Dominion Securities Inc and TD Securities Inc. Closing is anticipated to occur around August 28, 2020.

(CAD 1.0 = USD 0.751/EUR 0.640)

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