Filed Pursuant to Rule 433
Registration No. 333-277377
March 5, 2024
Magna International Inc.
Pricing Term Sheet
$400,000,000 5.050% Senior Notes due 2029
Issuer | Magna International Inc. | |
Format | SEC Registered | |
Trade Date | March 5, 2024 | |
Settlement Date | March 14, 2024 (T+7) | |
Expected Ratings* | A3 (Stable) / A- (Stable) (Moody’s / S&P) | |
Issue of Securities | 5.050% Senior Notes due 2029 | |
Aggregate Principal Amount Offered | $400,000,000 | |
Maturity Date | March 14, 2029 | |
Interest Rate | 5.050% per year | |
Benchmark Treasury | UST 4.250% due February 28, 2029 | |
Spread to Benchmark Treasury | +95 basis points | |
Benchmark Treasury Price and Yield | 100-16+; 4.134% | |
Yield to Maturity | 5.084% | |
Price to Public | 99.852%, plus accrued interest, if any, from March 14, 2024 | |
Interest Payment Dates | Semi-annually in arrears on March 14 and September 14 of each year, beginning on September 14, 2024 | |
Make-Whole Call | Prior to February 14, 2029; T+15 basis points | |
Par Call | On or after February 14, 2029 | |
Denominations | Minimum of $2,000 and integral multiples of $1,000 in excess thereof. |
* | A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |
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CUSIP / ISIN | 559222BA1 / US559222BA12 | |
Joint Book-Running Managers | BNP Paribas Securities Corp. BofA Securities, Inc. Citigroup Global Markets Inc. RBC Capital Markets, LLC Scotia Capital (USA) Inc. TD Securities (USA) LLC | |
Co-Managers | CIBC World Markets Corp. Commerz Markets LLC Goldman Sachs & Co. LLC HSBC Securities (USA) Inc. ICBC Standard Bank Plc ING Financial Markets LLC J.P. Morgan Securities LLC Loop Capital Markets LLC RB International Markets (USA) LLC Wells Fargo Securities, LLC |
It is expected that delivery of the notes will be made against payment therefor on or about March 14, 2024, which will be the seventh New York City business day following the date of pricing of the notes (this settlement cycle being referred to as “T+7”). Under Rule 15c6-1 of the U.S. Securities Exchange Act of 1934, as amended, trades in the secondary market generally are required to settle in two business days, unless the parties to a trade expressly agree otherwise. Accordingly, purchasers who wish to trade notes prior to the second business day before the settlement date will be required, by virtue of the fact that the notes initially will settle in T+7, to specify alternative settlement arrangements to prevent a failed settlement.
The issuer has filed a registration statement (including a base prospectus) and a preliminary prospectus supplement with the United States Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the preliminary prospectus supplement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the base prospectus and the prospectus supplement if you request it by calling BNP Paribas Securities Corp. toll-free at 1-800-854-5674, BofA Securities, Inc. toll-free at 1-800-294-1322 and Citigroup Global Markets Inc. toll-free at 1-800-831-9146.
ICBC Standard Bank Plc is restricted in its U.S. securities dealings under the United States Bank Holding Company Act and may not underwrite, subscribe, agree to purchase or procure purchasers to purchase notes that are offered or sold in the United States. Accordingly, ICBC Standard Bank Plc shall not be obligated to, and shall not, underwrite, subscribe, agree to purchase or procure purchasers to purchase notes that may be offered or sold by other underwriters in the United States. ICBC Standard Bank Plc shall offer and sell the notes constituting part of its allotment solely outside the United States.
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