Magna International Inc. Announces Offering of Euro and U.S. Dollar Denominated Senior Notes

Magna International Inc. announces offering of Euro and U.S. dollar senior notes for general corporate purposes, expected to close in May 2025.

Quiver AI Summary

Magna International Inc. has announced its plans to offer two series of senior notes: €575 million in Euro denominated notes maturing on May 21, 2031, at an interest rate of 3.625%, and $400 million in U.S. dollar denominated notes maturing on June 1, 2035, at an interest rate of 5.875%. The proceeds from these offerings will be used for general corporate purposes, including potential debt repayment. The closing date for the Euro senior notes is anticipated on May 21, 2025, and for the U.S. dollar senior notes on May 22, 2025, dependent on standard closing conditions. Both offerings will occur under an existing shelf registration statement and are not being qualified for distribution in Canada, although they will be available for private placement to accredited investors there. Joint book-running managers for the offerings include major financial institutions like BofA Securities and Citigroup.

Potential Positives

• Magna International Inc. is raising €575 million and $400 million through the issuance of Euro and U.S. dollar senior notes, respectively, demonstrating strong investor interest and support.
• The proceeds from the offerings may be used for general corporate purposes, including the potential repayment of existing indebtedness, which could improve the company's financial position.
• The successful underwriting agreements with major financial institutions highlight Magna's credibility and the strength of its financial strategy.
• Offering these senior notes reinforces Magna's commitment to maintaining a solid capital structure while seeking growth opportunities in the mobility technology sector.

Potential Negatives

• The issuance of senior notes may indicate the company is taking on additional debt, which could raise concerns about its long-term financial stability.
• The relatively high interest rates of 3.625% for Euro senior notes and 5.875% for U.S. dollar senior notes may reflect increased costs of borrowing, potentially impacting profitability.
• The company is using proceeds from the offerings for general corporate purposes, including the repayment of existing indebtedness, which may highlight underlying financial pressures.

FAQ

What are the details of Magna's new senior notes offering?

Magna is offering €575 million Euro senior notes and $400 million U.S. dollar senior notes, with maturities in 2031 and 2035 respectively.

What will Magna use the proceeds from the senior notes for?

The net proceeds will be used for general corporate purposes, including potential repayment of existing indebtedness.

When is the expected closing date for the offerings?

The Euro senior notes are expected to close on May 21, 2025, and the U.S. dollar senior notes on May 22, 2025.

Who are the joint book-running managers for the offerings?

BNP PARIBAS, BofA Securities, Citigroup, and others are managing the Euro notes. U.S. dollar notes are managed by BofA Securities, J.P. Morgan, and others.

Are these senior notes available for retail investors?

No, these securities are not available to retail investors in Canada, the UK, or the EEA and are offered to accredited investors only.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$MGA Hedge Fund Activity

We have seen 153 institutional investors add shares of $MGA stock to their portfolio, and 228 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• JARISLOWSKY, FRASER LTD removed 7,475,210 shares (-99.7%) from their portfolio in Q1 2025, for an estimated $254,082,387
• CIBC WORLD MARKET INC. added 3,169,599 shares (+121.6%) to their portfolio in Q1 2025, for an estimated $107,734,670
• BEUTEL, GOODMAN & CO LTD. removed 2,243,289 shares (-28.8%) from their portfolio in Q1 2025, for an estimated $76,249,393
• GOLDMAN SACHS GROUP INC added 1,870,230 shares (+315.5%) to their portfolio in Q1 2025, for an estimated $63,569,117
• FIL LTD removed 1,528,968 shares (-26.0%) from their portfolio in Q1 2025, for an estimated $51,969,622
• PZENA INVESTMENT MANAGEMENT LLC added 1,445,451 shares (+5.4%) to their portfolio in Q1 2025, for an estimated $49,130,879
• PRICE T ROWE ASSOCIATES INC /MD/ removed 1,078,525 shares (-17.1%) from their portfolio in Q1 2025, for an estimated $36,659,064

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$MGA Analyst Ratings

Wall Street analysts have issued reports on $MGA in the last several months. We have seen 2 firms issue buy ratings on the stock, and 2 firms issue sell ratings.

Here are some recent analyst ratings:

• TD Securities issued a "Buy" rating on 05/05/2025
• Barclays issued a "Negative" rating on 04/15/2025
• RBC Capital issued a "Outperform" rating on 01/24/2025
• Goldman Sachs issued a "Sell" rating on 12/10/2024

To track analyst ratings and price targets for $MGA, check out Quiver Quantitative's $MGA forecast page.

$MGA Price Targets

Multiple analysts have issued price targets for $MGA recently. We have seen 3 analysts offer price targets for $MGA in the last 6 months, with a median target of $38.0.

Here are some recent targets:

• Krista Friesen from CIBC set a target price of $38.0 on 05/05/2025
• Dan Levy from Barclays set a target price of $37.0 on 04/15/2025
• Michael Glen from Raymond James set a target price of $50.0 on 02/18/2025

Full Release

AURORA, Ontario, May 14, 2025 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) has announced that it has entered into underwriting agreements in respect of the offering of one series of Euro denominated senior notes (“Euro senior notes”) and one series of U.S. dollar denominated senior notes (“U.S. dollar senior notes”), as follows:

Magna intends to use the net proceeds from the offerings of the Euro senior notes and the U.S. dollar senior notes for general corporate purposes, which may include the repayment of its existing indebtedness.

The offering of Euro senior notes is expected to close on May 21, 2025 and the offering of U.S. dollar senior notes is expected to close on May 22, 2025, in each case, subject to customary closing conditions. The Euro senior notes and U.S. dollar senior notes will each be offered pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission (the “SEC”) and a short form base shelf prospectus and prospectus supplements filed with the Ontario Securities Commission.

BNP PARIBAS, BofA Securities, Citigroup, Commerzbank and ING are acting as joint book-running managers for the offering of Euro senior notes, and BofA Securities, Citigroup, J.P. Morgan, BNP PARIBAS, RBC Capital Markets, Scotiabank, TD Securities and Wells Fargo Securities are acting as joint book-running managers for the offering of U.S. dollar senior notes.

This release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The Euro senior notes and U.S. dollar senior notes are not being qualified for distribution in Canada but will be offered in Canada on a private placement basis to certain accredited investors as defined under Canadian securities laws.

The offering of each of these securities may be made only by means of a prospectus supplement and accompanying prospectus. Copies of the prospectus supplements and the accompanying prospectus can be obtained for free by visiting EDGAR on the SEC’s website at

www.sec.gov

or from:

In the case of the offering of Euro senior notes:

In the case of the offering of U.S. dollar senior notes:

INVESTOR CONTACT



Louis Tonelli, Vice-President, Investor Relations


louis.tonelli@magna.com │ 905.726.7035

MEDIA CONTACT



Tracy Fuerst, Vice-President, Corporate Communications & PR


tracy.fuerst@magna.com │ 248.761.7004

OUR BUSINESS


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Magna is more than one of the world’s largest suppliers in the automotive space. We are a mobility technology company built to innovate, with a global, entrepreneurial-minded team of approximately 167,000

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employees across 342 manufacturing operations and 103 product development, engineering and sales centres spanning 28 countries. With 65+ years of expertise, our ecosystem of interconnected products combined with our complete vehicle expertise uniquely positions us to advance mobility in an expanded transportation landscape.

FORWARD-LOOKING STATEMENTS



Certain statements in this press release constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”). Forward-looking statements in this press release include, but are not limited to, the expected closing date of the offering for the U.S. dollar senior notes and Euro senior notes and the intended use of the net proceeds from the offering of U.S. dollar senior notes and Euro senior notes, and are subject to, and expressly qualified by, the cautionary disclaimers that are set out in Magna’s regulatory filings. Please refer to the prospectus supplement relating to the offering of the notes, as well as Magna’s most current Management’s Discussion and Analysis of Results of Operations and Financial Position, Annual Information Form and Annual Report on Form 40-F, as replaced or updated by any of Magna’s subsequent regulatory filings, which set out the cautionary disclaimers, including the risk factors that could cause actual events to differ materially from those indicated by such forward-looking statements.

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Manufacturing operations, product development, engineering and sales centres include certain operations accounted for under the equity method.





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Number of employees includes approximately 155,000 employees at our wholly owned or controlled entities and over 12,000 employees at certain operations accounted for under the equity method.</sub>

UNITED KINGDOM (“UK”) NOTICE

No UK PRIIPs KID – No UK PRIIPs key information document (KID) has been prepared as the securities described herein are not available to retail in the UK.

The communication of this press release and any other document or materials relating to the issue of the securities described herein is not being made, and this press release and such other documents and/or materials have not been approved, by an authorized person for the purposes of section 21 of the UK’s Financial Services and Markets Act 2000, as amended. Accordingly, this press release and such other documents and/or materials are not being distributed to, and must not be passed on to, the general public in the UK. This press release and such other documents and/or materials are for distribution only to persons who (i) have professional experience in matters relating to investments and who fall within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Financial Promotion Order”)), (ii) fall within Article 49(2)(a) to (d) of the Financial Promotion Order, (iii) are outside the UK, or (iv) are other persons to whom it may otherwise lawfully be communicated or distributed under the Financial Promotion Order (all such persons together being referred to as “relevant persons”). This press release and any such other documents and/or materials are directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this press release and any such other documents and/or materials relate will be engaged in only with relevant persons. Any person in the UK that is not a relevant person should not act or rely on this press release or any other documents and/or materials relating to the issue of the securities described herein or any of their contents.

EUROPEAN ECONOMIC AREA (“EEA”) NOTICE

No EEA PRIIPs KID – No EEA PRIIPs key information document (KID) has been prepared as the securities described herein are not available to retail in the EEA.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.