AUTOCANADA ANNOUNCES PRICING OF ITS UPSIZED PRIVATE OFFERING OF $350 MILLION 5.75% SENIOR UNSECURED NOTES DUE 2029 AND REDEMPTION OF 2025 SENIOR NOTES
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.
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.
SOURCE AutoCanada Inc.