Stingray Acquires Newfoundland Capital Corporation Limited
Davies acted for Stingray Group Inc. in its $506-million acquisition of Newfoundland Capital Corporation Limited, one of Canada’s leading radio broadcasters with 101 licences (82 FM and 19 AM) across Canada. This was Stingray’s largest acquisition to date.
Davies also acted for Stingray with respect to the financing of the transaction, which included $450 million of new credit facilities and $140 million of equity, comprising a $83-million bought deal offering of subscription receipts, a $40-million private placement of subscription receipts to the Caisse de dépôt et placement du Québec, and $17 million from the exercise of preemption rights from the Boyko Group.
The acquisition will position Stingray as Canada’s largest public independent media company and supports its growth strategy through complementary vertical and new revenue sources.