AutoCanada Announces Upsize and Pricing of its Private Offering of Additional Senior Notes Due 2025 at a Re-Opening Price of 106.625%
EDMONTON, AB, April 15, 2021 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), is pleased to announce that it has increased and priced its previously announced offering (the "Offering") of senior notes. The Offering consists of an additional $125 million aggregate principal amount of its existing 8.75% senior unsecured notes due February 11, 2025 (the "Notes") at a price of 106.625% plus accrued interest from and including February 11, 2021, which was increased from the previously announced offering size of $100 million. The Notes are being offered and sold to "accredited investors" in certain provinces of Canada on a private placement basis.
Paul Antony, Executive Chairman of the Company, stated, "We are very pleased with the successful outcome of the offering, particularly the pricing at a premium to par, resulting in a yield of 5.595% which substantially reduces our cost of debt on the incremental notes relative to the initial issuance. We see this pricing improvement as reflecting continued support from all of our investors in response to our strong operating performance, significant available market opportunities, and balance sheet strength. We look forward to building on our momentum and growing long-term value for shareholders."
The Offering is expected to close on April 22, 2021, subject to the receipt of all necessary approvals and satisfaction of customary closing conditions.
Proceeds of the Offering will be used by the Company to reduce the outstanding balance under its syndicated credit facility and for general corporate purposes, including acquisitions.
AutoCanada is a leading North American multi-location automobile dealership group currently operating 66 franchised dealerships, comprised of 27 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 and Porsche branded vehicles. Additionally, the Company's Canadian operations segment currently operates one used vehicle dealership supporting the Used Digital Retail Division, and two stand-alone collision centres (within our group of 17 collision centres). In 2020, our 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", "projection", "vision", "goals", "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 and the use of net proceeds of 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: potential changes in the regulatory and legislative environment; political uncertainty and instability in North America and internationally; volatility in interest and tax rates; operating risks inherent in the automotive retail industry; and changes in general economic conditions including the capital and credit markets.
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. In particular, in presenting its forward-looking statements, AutoCanada has made assumptions respecting, among other things: the relative stability of general North American economic conditions; that AutoCanada will receive the approvals needed to complete the Offering; and regulatory and legislative conditions. Therefore, any such forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this press release.
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.
SOURCE AutoCanada Inc.