Mega Brands looks to raise C$78.3m

Canada-based toy maker aiming to reduce revolving term facilities.
Publish date:

Montreal-based Mega Brands is to sell 3.85 million common shares in a bought deal, raising C$78.3 million to reduce its revolving term facilities, according to Reuters.

The firm said shares in the offering are priced at C$20.35 each. Mega Brands also revealed that the bought deal's syndicate of underwriters - led by BMO Capital Markets - has an option to purchase an additional 577,500 shares, worth C$11.75m.

Proceeds from the offering will also be used for general corporate purposes.

Reuters reported that in combination with amendments to its senior secured credit facilities maturing in 2012, Mega Brands said it now has the financial flexibility to pursue its growth strategy. An analyst said that it has a solid product line-up in both toys and stationery and activities divisions, while sales growth will also be supplemented by expansion into new markets.

Mega Brands upped its first quarter spending on marketing by 50 per cent to $6.3 million in advance of several new product launches in coming months.

Mega Brands has been faced with an expensive global toy recall of its Magnetix building sets - one child died and 27 suffered serious intestinal injuries after swallowing some of the small magnets in the Magnetix toys, which Mega Brands acquired with its purchase of Rose Art two years ago.



Mega Brands seals Nick deal

Mega Brands has inked an international licensing deal with Nickelodeon and Viacom Consumer Products (NVCP) to produce toys based on three of the most popular Nick Jr. pre-school properties.

Featured Jobs


Marketing Director UK

Gameplan I Southeast of England I Salary: Competitive I Date Published Monday 7th January 2019

Rainbow logo landscape_home of classic Final

Product Manager

Rainbow Designs Ltd I Olympia, London I Salary: Competitive I Date Published Wednesday 16th January 2019