CAMBRIDGE, Ontario - ATS Corporation (TSX:ATS), a global provider of automation solutions, has announced the upsize of its senior unsecured notes offering from the initial C$300 million to C$400 million. The 6.50% notes, due in 2032, will be sold at par value and are set to accrue interest payable semi-annually, starting February 21, 2025.
The company has entered into an underwriting agreement for the private placement offering, with the notes being sold in Canada using certain prospectus exemptions.
They have not been registered under the U.S. Securities Act of 1933 and are available in the United States only to qualified institutional buyers, in accordance with Rule 144A, and to international buyers under Regulation S.
ATS intends to use the net proceeds from the offering to repay amounts borrowed under its senior syndicated credit facility. The closing of the offering, subject to customary conditions, is anticipated to occur on or about August 21, 2024.
The notes will be issued under an indenture between ATS Corporation and Computershare Trust Company of Canada as trustee. The offering is not open for public sale and will not be registered in the United States, adhering to the necessary legal requirements for such financial transactions.
ATS Corporation, established in 1978, specializes in custom automation, repeat automation, and automation products, catering to various sectors including life sciences, transportation, and energy. It operates over 65 manufacturing facilities and more than 85 offices worldwide, employing over 7,000 individuals.
The announcement contains forward-looking statements that involve risks and uncertainties, including the expected closing date of the offering and the intended use of proceeds. The company cautions that these statements are based on management's current plans and expectations, which could change materially due to various factors.
This news article is based on a press release statement by ATS Corporation.
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