/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES./
VANCOUVER, BC, April 29, 2021 /CNW/ - CanWel Building
Materials Group Ltd. ("CanWel" or "the Company")
(TSX: CWX) (TSX: CWX.NT.A) announced today that it has entered
into an underwriting agreement with a syndicate of underwriters led
by Stifel GMP and including National Bank Financial Inc. and RBC
Capital Markets to sell $325 million
aggregate principal amount of 5.25% Senior Unsecured Notes due 2026
(the "2026 Notes"). The 2026 Notes will be senior unsecured
obligations of CanWel maturing May 15,
2026, and ranking equally with all other present and future
senior unsecured indebtedness of the Company.
CanWel intends to use the net proceeds to primarily repay
indebtedness under its ABL Revolving Credit Facility, which at
March 31 2021 had a balance of
$300.8 million, for fees and expenses
of the Offering, and for working capital and general corporate
purposes. The Company will have the ability to redraw the ABL
Revolving Credit Facility in the future to fund potential
acquisitions and for other corporate purposes.
Amar Doman, Chairman & CEO of
CanWel, commented, "The Company is pleased with investor reception
to our senior notes offering which allows us to further solidify
our balance sheet on attractive terms and provide ample liquidity
to take advantage of future acquisition opportunities that fit our
strategic, financial and operating parameters. Diversifying our
funding sources is a key tenet of our strategic plans as we
continue our evolution and growth journey. Finally, I would like to
commend everyone at CanWel, including our business partners, for
exceptional operating performance and financial execution during a
very unique period in our history. CanWel has never been stronger
thanks to our collective efforts and success."
The offering of 2026 Notes is expected to close on or about
May 10, 2021, subject to customary
closing conditions. The 2026 Notes were offered on a private
placement basis in each of the provinces of Canada pursuant to certain prospectus
exemptions. The 2026 Notes have not been registered under the U.S.
Securities Act of 1933, as amended, and are being offered and sold
into the U.S. only to qualified institutional buyers in reliance on
Rule 144A.
This press release is not an offer or a solicitation of an offer
of securities for sale in the United States. The 2026 Notes
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 registration.
About CanWel
Founded in 1989, CanWel is headquartered in Vancouver, British Columbia and trades on the
Toronto Stock Exchange under the symbol CWX and is Canada's only fully integrated national
distributor in the building materials and related products sector.
CanWel operates: multiple treating plant and planing facilities in
Canada and the United States; distribution centres
coast-to coast in all major cities and strategic locations across
Canada; in the United States near Portland, Oregon San
Francisco and Los Angeles,
California and in 14 locations in the State of Hawaii through its wholly owned
Honsador Building Products Group. CanWel distributes a wide range
of building materials, lumber, renovation and electrical products.
In addition, through its CanWel Fibre division, CanWel operates a
vertically integrated forest products company based in Western Canada, operating from British Columbia to Saskatchewan, also servicing the US Pacific
Northwest. CanWel owns approximately 117,000 acres of private
timberlands, strategic licenses and tenures, log harvesting and
trucking operations, several post and pole peeling facilities and
two pressure-treated specialty wood production plants and a
specialty saw mill.
Certain statements in this press release may constitute
"forward-looking" statements. When used in this press release,
forward-looking statements often but not always, can be identified
by the use of forward-looking words such as, including but not
limited to, "may", "will", "would", "should", "expect", "believe",
"plan", "intend", "anticipate", "predict", "remain", "estimate",
"potential", "forecast", "budget", "schedule", "continue", "could",
"might", "project", "targeting", "future" and other similar
terminology or the negative or inverse of such words or
terminology. Forward-looking information in this news release
includes, without limitation, statements with respect to the
offering of the 2026 Notes and the use of proceeds therefrom and
potential acquisition opportunities. These forward-looking
statements reflect the current expectations of CanWel's management
regarding future events and operating performance, but involve
other known and unknown or unpredictable risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of CanWel. Although CanWel believes that the
expectations and the conditions reflected in such forward-looking
statements are reasonable, CanWel can give no assurance that each
of these conditions will be satisfied to the satisfaction of CanWel
or that expectations will prove to be correct. By their nature,
forward looking statements involve risk and uncertainty because
they relate to events and depend on circumstances that will occur
in the future. There are a number of additional risks and
uncertainties affecting or that could affect CanWel, which could
cause actual results and developments to differ materially from
those described in, expressed or implied by these forward- looking
statements Accordingly, readers should not place undue reliance on
any forward-looking statements or information. There are numerous
risks associated with an investment in CanWel's common shares or
senior unsecured notes, which are also further described in the
"Risk Factors" sections of CanWel's annual information form dated
March 31, 2021 as well as its other
public filings on SEDAR. These forward-looking statements speak
only as of the date of this press release. We caution that the
foregoing factors that may affect future results are not
exhaustive. When relying on our forward-looking statements to make
decisions with respect to CanWel, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. Neither CanWel nor any of its associates or
directors, officers, partners, affiliates, or advisers, provides
any representation, assurance or guarantee that the occurrence of
the events expressed or implied in any forward-looking statements
in these communications will actually occur. You are cautioned not
to place undue reliance on these forward looking statements. Except
as required by applicable securities laws and legal or regulatory
obligations, CanWel is not under any obligation, and expressly
disclaims any intention or obligation, to update or revise any
forward looking statements, whether as a result of new information,
future events or otherwise.
SOURCE CanWel Bulding Materials Group Ltd.