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Ritchie Bros. Aims to Raise $1.35 Billion in Bond Offerings to Fund IAA Merger

By Adriano Marchese

 

Ritchie Bros. Auctioneers Inc. said Tuesday it is seeking to raise $1.35 billion by way of two bond offerings to help fund its merger with U.S.-based online vehicle marketplace IAA Inc.

The Canadian industrial auctioneer and heavy industrial equipment seller said it intends to begin an offering for about $550 million aggregate principal amount of senior secured notes due 2028 and one for $800 million due 2031.

In early November, Ritchie Bros. agreed to buy IAA in a deal worth about $7.3 billion, as it looked to expand its presence in vehicle remarketing.

In late January, Ritchie Bros. and IAA amended the deal to boost the cash component of the offer so that IAA shareholders would receive $12.80 in cash and 0.5252 of a Ritchie Bros. share for each IAA share, compared with an earlier offer of $10 in cash and 0.5804 of a Ritchie Bros. share for each IAA share.

Ritchie Bros. said it would use the net proceeds from the bond offerings in conjunction with proceeds from an existing loan facility to fund the cash portion of its merger with IAA.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

February 28, 2023 08:04 ET (13:04 GMT)

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