MAGNA INTERNATIONAL INC
For the period ended Dec 31, 2023. Filed Mar 28, 2024.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2023 · Filed Mar 28, 2024
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Contents
EX-3 · FINANCING ACTIVITIES
FINANCING ACTIVITIES
| 2023 | 2022 | Change | |
|---|---|---|---|
| Issues of debt | $2,083 | $54 | |
| Increase in short-term borrowings | 487 | 11 | |
| Issue of Common Shares on exercise of stock options | 20 | 8 | |
| Contributions to subsidiaries by non-controlling interests | 11 | 5 | |
| Tax withholdings on vesting of equity awards | (11) | (15) | |
| Repurchase of Common Shares | (13) | (780) | |
| Dividends paid to non-controlling interest | (74) | (46) | |
| Dividends paid | (522) | (514) | |
| Repayments of debt | (644) | (456) | |
| Cash provided from (used for) financing activities | $1,337 | $(1,733) | $3,070 |
During the first quarter of 2023, we issued the following Senior Notes [the “Senior Notes”]:
| Amount in USD at | |||||||
| Issuance Date | Issuance Date | Maturity Date | |||||
| Cdn$350 million Senior Notes at 4.950% | March 10, 2023 | $ | 258 million | January 31, 2031 | |||
|---|---|---|---|---|---|---|---|
| €550 million Senior Notes at 4.375% | March 17, 2023 | $ | 591 million | March 17, 2032 | |||
| $300 million Senior Notes at 5.980% | March 21, 2023 | $ | 300 million | March 21, 2026 | |||
| $500 million Senior Notes at 5.500% | March 21, 2023 | $ | 500 million | March 21, 2033 | |||
The total cash proceeds received from the Senior Note issuances was $1,637 million, which consisted of $1,649 million of Senior Notes less debt issuance costs of $12 million.
The Senior Notes are unsecured obligations and do not include any financial covenants. We may redeem the Senior Notes in whole or in part at any time, and from time to time, at specified redemption prices determined in accordance with the terms of the indenture governing the Senior Notes. Refer to Note 16, “Debt” of our audited consolidated financial statements for the year ended December 31, 2023.
Magna International Inc. Annual Report 2023 17
On March 6, 2023, we entered into a syndicated, unsecured, delayed draw term loan [the “Term Loan”] with a 3-year tranche of $800 million and 5-year tranche of $600 million. During the second quarter of 2023, we drew $100 million from the 3-year tranche and $300 million from the 5-year tranche of the Term Loan. The amounts are drawn in advances of 1,3 or 6-month loans and may be rolled over until the end of the 3- and 5-year terms. The remaining balance of the facility was subsequently cancelled.
Short-term borrowings increased $487 million in 2023 primarily due to the issuance of Commercial Paper.
Cash dividends paid per Common Share were $1.84 for 2023 compared to $1.80 for 2022.
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