EDMONTON, Jan. 31, 2020
/CNW/ - AutoCanada Inc. ("AutoCanada" or the
"Company") (TSX: ACQ) is pleased to announce that it has
priced its previously announced private placement of $125 million 5-year Senior Unsecured Notes (the
"Notes"). Interest on the Notes will accrue at the rate of
8.75% per annum and will be payable semi-annually in arrears in
equal semi-annual installments on February
11 and August 11 of each year,
beginning on August 11, 2020. The
Notes are being sold at a price of 99.011% and will mature on
February 11, 2025.
Paul Antony, Executive Chairman
of the Company, added, "We are very pleased with the outcome of the
offering and support from investors upon hearing of the progress on
both the Go Forward initiatives in Canada and the U.S., and improvements made to
the balance sheet."
The Notes are being offered and sold to "accredited investors"
in certain provinces of Canada and
to non-U.S. persons on a private placement basis.
On January 28, 2020, the Company
announced that it had launched an offer (the "Tender Offer")
to purchase for cash all of the Company's outstanding 5.625% Senior
Notes due May 25, 2021 (the "2021
Notes"). AutoCanada expects to use the net proceeds from the
sale of the Notes together with additional borrowings under the
Company's recently announced amended credit facility to fund
purchases of the 2021 Notes under the Tender Offer, including the
redemption of any 2021 Notes that remain outstanding after the
completion of the Tender Offer.
Subject to the receipt of all necessary approvals and the
satisfaction of customary conditions, the private placement of the
Notes is expected to close on February 11,
2020.
About AutoCanada
AutoCanada is a leading North American multi-location automobile
dealership group currently operating 63 franchised dealerships,
comprised of 27 brands, in eight provinces in Canada as well as a group in Illinois, USA and has over 4,200 employees.
AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa
Romeo, Chevrolet, GMC, Buick,
Cadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi,
Volkswagen, Kia, Mazda, Mercedes-Benz, Smart, BMW, MINI, Volvo,
Toyota, Lincoln, and Honda branded
vehicles. In 2018, our dealerships sold approximately 66,000
vehicles and processed approximately 915,000 service and collision
repair orders in our 1,157 service bays generating revenue in
excess of $3 billion.
Forward-Looking Statements
Certain statements contained in this press release are
forward-looking statements and information (collectively,
"forward-looking statements") within the meaning of the
applicable Canadian securities legislation. We hereby provide
cautionary statements identifying important factors that could
cause our actual results to differ materially from those projected
in these forward-looking statements. Any statements that express,
or involve discussions as to, expectations, beliefs, plans,
objectives, assumptions or future events or performance (often, but
not always, through the use of words or phrases such as "will
likely result", "are expected to", "will continue", "is
anticipated", "projection", "vision", "goals", "objective",
"target", "schedules", "outlook", "anticipate", "expect",
"estimate", "could", "should", "plan", "seek", "may", "intend",
"likely", "will", "believe" and similar expressions) are not
historical facts and are forward looking. In particular, this
press release contains forward-looking statements with respect to,
among other things, the timing and completion of the private
placement of the Notes and the Company's use of proceeds from the
offering.
The forward-looking statements included in this press release
are not guarantees of future performance and should not be unduly
relied upon. Readers are cautioned that forward-looking statements
are based on current expectations, estimates and projections that,
by their nature, forward-looking statements involve a number of
known and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated and described
in the forward-looking statements. These known and unknown risks
and uncertainties include, but are not limited to: the closing of
the private placement is subject to a number of customary
conditions and there can be no guarantee that such conditions will
be met.
Forward-looking statements involve estimates and assumptions and
are subject to risks, uncertainties and other factors some of which
are beyond our control and difficult to predict. Accordingly,
actual results or outcomes may differ materially from those
expressed in the forward-looking statements.
AutoCanada cautions that the foregoing list of assumptions,
risks and uncertainties is not exhaustive. The Company's Annual
Information Form and other documents filed with securities
regulatory authorities (accessible through the SEDAR website at
www.sedar.com) describe the risks, material assumptions and other
factors that could influence actual results and which are
incorporated herein by reference. The forward-looking statements
contained in this press release speak only as of the date hereof
and AutoCanada assumes no obligation to publicly update or revise
them to reflect new events or circumstances, except as may be
required pursuant to applicable securities laws.
Additional Information
Additional information about AutoCanada is available at the
Company's website at www.autocan.ca and www.sedar.com.
SOURCE AutoCanada Inc.