EDMONTON, Alta., January 20, 2022 /CNW/ – AutoCanada Inc. (“Auto Canada“or the”Society“) (TSX:ACQ), a leading North American multi-location automotive dealership group, is pleased to announce that it has increased and priced its previously announced offering (the “Offer“) of senior notes. The offering consists of $350 million aggregate principal amount of senior unsecured notes due February 7, 2029 (the “Remarks“), which is an increase from the previously announced supply 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 that day is not a business day, the next business day), from August 7, 2022.
Paul-Antoine, Executive Chairman of the Company, said: “We are very pleased with the success of the offering and the continued support of our investors in response to our strong operational and financial performance, the significant market opportunities available and the strength of our balance sheet. We look forward to continuing to build on our momentum and build long-term shareholder value. »
The Company intends to use the net proceeds of the Bond Offering to finance the redemption of its $250 million 8.75% senior bonds due 2025 (“Tickets 2025“), to reduce the outstanding balance of its syndicated credit facility and for general corporate purposes, including acquisitions.
Auto Canada gives notice of redemption of all outstanding 2025 Bonds. The redemption of the 2025 Bonds will take place on February 11, 2022 and interest will cease to accrue on the 2025 Bonds from that date. The total redemption amount payable for each $1,000 the principal amount of the 2025 Bonds 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 United States. Subject to receipt of all necessary approvals and satisfaction of customary conditions, the Offering is expected to close on February 7, 2022.
On Auto Canada
Auto Canada is a leading North American multi-location automotive dealership group operating 78 franchised dealerships, comprising 28 brands, in eight provinces of Canada as well as a group Illinois, United States. Auto Canada currently sells Chrysler, Dodge, Jeep, RAM, DECREE, 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. Additionally, the Company’s Canadian operations segment currently operates two used vehicle dealerships supporting the used digital retail division and four stand-alone collision centers (within our group of 18 collision centers). In 2020, our then-dealers sold approximately 66,000 vehicles and processed more than 756,000 service and collision repair orders at our 1,098 service bays generating revenue in excess of $3 billion.
Certain statements contained in this press release are forward-looking statements and information (collectively “forward-looking statements”), within the meaning of applicable Canadian securities laws. 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 statement that expresses or implies discussions of expectations, beliefs, plans, goals, 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”, “goal”, “target”, “timeframes”, “outlook”, “anticipates”, “expects”, “estimates”, “could”, “should”, “plan”, “seek”, “may”, “intend”, “probable”, “shall”, “believe”, “should” and similar expressions) are not historical facts and look to the future. In particular, this press release contains forward-looking statements regarding, among other things, the timing and completion of the Offering, the timing and completion of the redemption of the 2025 Bonds and the Company’s use of the net proceeds of the Offering. .
The forward-looking statements included in this press release are not guarantees of future performance and should not be relied upon unduly. Readers are cautioned that forward-looking statements are based on current expectations, estimates and projections which, 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. – look at the statements. These known and unknown risks and uncertainties include, but are not limited to, the satisfaction of the conditions to the closing of the note offering. Moreover, while Auto Canada intends to use the net proceeds of the Offering in the manner disclosed herein, there may be circumstances not known at the time where a reallocation of the net proceeds may be desirable for business reasons that management believes be in from Auto Canada 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 to differ materially from those expressed in the forward-looking statements.
Auto Canada cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The Company’s Annual Information Form and other documents filed with the securities authorities (available on the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could affect actual results and which are incorporated herein by reference.
Further, any forward-looking statement speaks only as of the date 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 such statement is made or to reflect the occurrence of unforeseen events. New factors emerge from time to time, and it is not possible for management to anticipate all of these factors and assess in advance the impact of each of these factors on our business or the extent to which any one factor , or a combination of factors, could cause actual results to differ materially from those contained in the forward-looking statements.
Additional information about Auto Canada is available on the Company’s website at www.autocan.ca and www.sedar.com.
THE SOURCE Auto Canada Inc.
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