EDMONTON, Feb. 11, 2020 /CNW/ - AutoCanada Inc.
("AutoCanada" or the "Company") (TSX: ACQ) is pleased
to announce that it has closed its previously announced private
placement of $125 million aggregate
principal amount of 8.75% senior notes due February 11, 2025 (the "Notes").
As previously announced and concurrent with the closing of the
private placement of the Notes, AutoCanada has entered into an
amended and restated credit agreement (the "New Credit
Facility"). The New Credit Facility amends and extends
AutoCanada's existing credit facility for three years, and includes
a $175 million revolving credit
facility, a $750 million wholesale
floorplan financing facility and a $25
million wholesale leasing facility, for total aggregate bank
facilities of $950 million.
In addition, the Company announced that its cash tender offer
(the "Tender Offer") to purchase any and all outstanding
5.625% Senior Notes due May 25, 2021
(the "2021 Notes") expired on February 10, 2020 at 5:00pm (EST). Pursuant to the terms of the Tender
Offer, AutoCanada will be taking-up all of the approximately
$124.5 million aggregate principal
amount of 2021 Notes that have been validly tendered. Further to
its overall debt refinancing plans and as previously announced,
AutoCanada is giving notice of redemption of all 2021 Notes
remaining outstanding following the expiry of the Tender Offer (the
"Outstanding 2021 Notes"). The redemption of the
Outstanding 2021 Notes will occur on March
13, 2020 and interest will cease to accrue on the
Outstanding 2021 Notes as of that date. The total redemption amount
payable for each $1,000 principal
amount of the Outstanding 2021 Notes will be $1,014.06, plus accrued and unpaid interest.
AutoCanada plans to use the proceeds from the Notes, together
with borrowings under the New Credit Facility, to fund the cash
purchase of all the validly tendered 2021 Notes and the redemption
of the Outstanding 2021 Notes.
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, use of net proceeds from the private placement of the
Notes and the redemption of the Outstanding 2021 Notes.
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.
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. In particular, in
presenting its forward-looking statements, AutoCanada has made
assumptions respecting, amongst other things, the relative
stability of general North American economic conditions.
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.