Martinrea International Inc.
TSX : MRE

Martinrea International Inc.

June 11, 2009 07:54 ET

Martinrea International Inc. Announces $48,500,000 Private Placement Financing

TORONTO, ONTARIO--(Marketwire - June 11, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Martinrea International Inc. (the "Company" or "Martinrea") (TSX:MRE), a leader in the production of quality metal parts, assemblies and modules and fluid management systems focused primarily on the automotive sector, is pleased to announce that it has entered into a financing agreement pursuant to which GMP Securities L.P., together with a syndicate of dealers including Paradigm Capital Inc. and TD Securities Inc. (the "Underwriters"), has offered to purchase, on a private placement basis, 10,000,000 common shares of the Company at a price of $4.85 per share (the "Issue Price") for total gross proceeds of approximately $48,500,000 (the "Offering").

The Company has also granted the Underwriters the option to arrange for purchasers, on a "best efforts" private placement agency basis, of up to an additional 1,500,000 common Shares of the Company at the Issue Price for additional gross proceeds of up to $7,275,000.

The common shares issued with respect to the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws.

The closing of the Offering is expected to occur on or about June 25, 2009 and is subject to receipt of all necessary regulatory approvals including that of the Toronto Stock Exchange.

The net proceeds from the Offering will be used by Martinrea for working capital and for general corporate purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

The common shares of Martinrea trade on The Toronto Stock Exchange under the symbol "MRE".

This press release contains forward-looking statements within the meaning of applicable Canadian securities laws including statements relating to the proposed financing and use of proceeds therefrom. The words "expect", "anticipate", "estimate", "may", "will", "should", "intend", "believe", "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, those risks and uncertainties as set out under the heading "Risks and Uncertainties" in the Company's Management Discussion and Analysis dated May 7, 2009 and those risks and uncertainties as set forth in the Company's Annual Information Form and other public filings which can be found at www.sedar.com. Actual results may differ materially from those currently anticipated. Except as required by law, the Company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements.

Contact Information

  • Martinrea International Inc.
    Nick Orlando
    President and Chief Financial Officer
    (416) 749-0314
    (905) 264-2937 (FAX)