EDMONTON, AB, Jan. 20, 2022 /CNW/ - AutoCanada Inc.
("AutoCanada" or the "Company") (TSX: ACQ), a leading
multi-location North American automobile dealership group, is
pleased to announce that it has upsized and priced its previously
announced offering (the "Offering") of senior notes.
The Offering consists of $350
million aggregate principal amount of senior unsecured notes
due February 7, 2029 (the
"Notes"), which is an increase from the previously announced
offering size of $300 million.
Interest on the Notes will accrue at the rate of 5.75% per annum
and will be payable semi-annually in arrears in equal semi-annual
installments on February 7 and
August 7 of each year (or if such day
is not a business day, the next following business day), beginning
on August 7, 2022.
Paul Antony, Executive Chairman
of the Company, stated, "We are very pleased with the successful
outcome of the offering and continued support from our investors in
response to our strong operating and financial performance,
significant available market opportunities, and balance sheet
strength. We look forward to continuing to build on our momentum
and growing long-term value for shareholders."
The Company intends to use the net proceeds of the Offering of
the Notes to fund the redemption of its outstanding $250 million 8.75% Senior Notes due 2025
("2025 Notes"), to reduce the outstanding balance under its
syndicated credit facility and for general corporate purposes
including acquisitions.
AutoCanada is giving notice of redemption of all outstanding
2025 Notes. The redemption of the 2025 Notes will occur on
February 11, 2022 and interest will
cease to accrue on the 2025 Notes as of that date. The total
redemption amount payable for each $1,000 principal amount of the 2025 Notes will be
$1,043.75, plus accrued and unpaid
interest.
The Notes will be offered and sold on a private placement basis
to "accredited investors" in certain provinces of Canada and "qualified institutional buyers" in
the United States. Subject to
receipt of all necessary approvals and satisfaction of customary
conditions, the Offering is expected to close on February 7, 2022.
About AutoCanada
AutoCanada is a leading North American multi-location automobile
dealership group operating 78 franchised dealerships, comprised of
28 brands, in eight provinces in Canada as well as a group in Illinois, USA. 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, BMW, MINI, Volvo, Toyota, Lincoln, Honda, Porsche and Acura branded
vehicles. Additionally, the Company's Canadian operations segment
currently operates two used vehicle dealerships supporting the Used
Digital Retail Division, and four stand-alone collision centres
(within our group of 18 collision centres). In 2020, our then
dealerships sold approximately 66,000 vehicles and processed over
756,000 service and collision repair orders in our 1,098 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 of 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", "objective",
"target", "schedules", "outlook", "anticipate", "expect",
"estimate", "could", "should", "plan", "seek", "may", "intend",
"likely", "will", "believe", "shall" 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 Offering, the
timing and completion of the redemption of the 2025 Notes and the
Company's use of net 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, 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, satisfaction of the
conditions to closing of the offering of Notes. Further, while
AutoCanada intends to use the net proceeds from the Offering in the
manner stated herein, there may be circumstances that are not known
at this time where a reallocation of the net proceeds may be
advisable for business reasons that management believes are in
AutoCanada's best interests.
Forward-looking statements may 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, these factors could cause actual results or
outcomes to 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.
Further, any forward-looking statement speaks only as of the
date on which such statement is made, and, except as required by
applicable law, we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to
time, and it is not possible for management to predict all of such
factors and to assess in advance the impact of each such factor on
our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statement.
Additional Information
Additional information about AutoCanada is available at the
Company's website at www.autocan.ca and www.sedar.com.
SOURCE AutoCanada Inc.