You don't see Alimentation Couche-Tard Inc. in the market very often, so the firm didn't hold back when issuing $300-million in new class B shares.
The logic behind this one isn't hard to decipher. Since March 1, the stock is up a stunning 55 per cent, so the issue is inexpensive for Couche-Tard.
Most of the stock's rapid appreciation came after the company announced in April that it would acquire Statoil Fuel & Retail ASA for $2.8-billion (U.S.), expanding its footprint into Europe. That deal was paid for using existing credit facilities and a new 3-year $3.2-billion acquisition credit facility.
Couche-Tard's new funds will be put toward paying down a portion of its long-term debt.
Tuesday's bought deal came at a 2.3 per cent discount and was co-led by National Bank Financial, Scotia Capital, UBS Securities and HSBC Securities.