NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO US
MONTREAL, June 26, 2009 /CNW Telbec/ - SNC-Lavalin Group Inc. announces
that it has priced the issuance of an aggregate principal amount of $350
million 6.19% debentures (the "Debentures"). The Debentures are being offered
for sale on a marketed basis through a syndicate of agents led by RBC Dominion
Securities Inc. The Debentures will be dated July 3, 2009 and will mature on
July 3, 2019. Interest on the Debentures at the rate of 6.19% per annum will
be payable semi-annually in arrears in January and July in each year,
commencing January 3, 2010, until July 3, 2019, at which time the Debentures
will be fully paid off. The Closing is expected to take place on July 3, 2009.
The Corporation expects to use the net proceeds from the offering to
fully pay off at maturity its $105 million principal amount 7.70% unsecured
debentures due in September 2010, to fund potential investments in
Infrastructure Concession Investment opportunities and potential selective
business acquisitions and for general corporate purposes.
"We are pleased with the interest and support of investors," said Pierre
Duhaime, President and Chief Executive Officer, SNC-Lavalin Group Inc. "This
transaction permits the Corporation to better match its long term assets with
its long term capital. Despite our cash position, we felt it would be prudent
to issue debentures because of the upcoming maturity of our outstanding
debentures, and the many infrastructure concession investment and business
acquisitions opportunities that we foresee."
The credit rating for the Debentures assigned by S&P is BBB+ and by DBRS
is BBB (high).
The Corporation has filed a final short form prospectus with securities
regulatory authorities or similar authorities in each of the provinces of
Canada in connection with the offering of the Debentures.
The securities offered have not been and will not be registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any State in which such offer, solicitation or sale would be
unlawful. The final short form prospectus is available on SEDAR at
SNC-Lavalin (TSX: SNC) is one of the leading engineering and construction
groups in the world and a major player in the ownership of infrastructure, and
in the provision of operations and maintenance services. SNC-Lavalin has
offices across Canada and in 35 other countries around the world, and is
currently working in some 100 countries. www.snclavalin.com.
Reference in this press release, and hereafter, to the "Corporation" or
to "SNC-Lavalin" means, as the context may require, SNC-Lavalin Group
Inc. and all or some of its subsidiaries or joint ventures, or SNC-
Lavalin Group Inc. or one or more of its subsidiaries or joint ventures.
Statements made in this press release that describe the Corporation's or
management's budgets, estimates, expectations, forecasts, objectives,
predictions or projections of the future may be "forward-looking
statements", which can be identified by the use of the conditional or
forward-looking terminology such as "anticipates", "believes",
"estimates", "expects", "may", "plans", "projects", "should", "will", or
the negative thereof or other variations thereon. The Corporation
cautions that, by their nature, forward-looking statements involve risks
and uncertainties, and that its actual actions and/or results could
differ materially from those expressed or implied in such forward-looking
statements, or could affect the extent to which a particular projection
materializes. For more information on risks and uncertainties, and
assumptions that would cause the Corporation's actual results to differ
from current expectations, please refer to the section "Risks and
Uncertainties" and the section "How We Budget and Forecast Our Results
and Basis for Providing Financial Guidance", respectively, in the
Corporation's Annual Report under "Management's Discussion and Analysis",
and under the section "Caution regarding forward-looking statements" of
the Corporation's most recent Annual Information Form filed with the
securities regulatory authorities in Canada, available at SEDAR
(www.sedar.com). Unless otherwise mentioned, the forward-looking
statements herein reflect the Corporation's expectations as of the date
of this press release and are subject to change after this date.
For further information:
For further information: Investors: Denis Jasmin, Vice-President,
Investor Relations, (514) 393-8000, ext. 7553, email@example.com;
Media: Gillian MacCormack, Vice-President, Global Public Relations, (514)
393-8000, ext. 7354, firstname.lastname@example.org; SNC-Lavalin press
releases are available on its website at www.snclavalin.com.