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 intends to offer $300 million (the "Offering") of 7-year Senior
Unsecured Notes (the "Notes"). 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. Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC
World Markets Inc., and RBC Dominion Securities Inc. are acting as
Joint Bookrunning Managers, ATB Capital Markets Inc. as Lead
Manager, and HSBC Securities (Canada) Inc., National Bank Financial Inc.,
Canaccord Genuity Corp., Cormark Securities Inc., Stifel Nicolaus
Canada Inc., Acumen Capital Finance Partners Limited and TD
Securities Inc. are acting as Co-Managers for the Offering. The
Company intends to use the net proceeds of the Offering to fund the
redemption of its outstanding $250
million 8.75% Senior Notes due 2025 and to reduce the
outstanding balance under its syndicated credit facility.
In addition, the Company has received commitments to amend and
extend its existing credit facility for three years to 2025, which
amendments are expected to become effective on or prior to the
closing of the Offering. The amended credit facility maintains the
revolving facility at $225 million
and includes a $1,060 million
wholesale floorplan financing facility and a $15 million wholesale leasing facility, for total
aggregate bank facilities of $1.3
billion. The Company is also pleased to welcome The
Toronto-Dominion Bank to its existing syndicate of lenders which
includes The Bank of Nova Scotia
(Sole Bookrunner), Canadian Imperial Bank of Commerce, Royal Bank
of Canada, Bank of Montreal, HSBC Bank Canada and Alberta
Treasury Branches.
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", "objective", "commitments" "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 terms and completion of
the Offering, the use of net proceeds of the Offering and the
expected amendments to the Company's existing credit facility and
anticipated timing of such amendments.
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; 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.
Additional Information
Additional information about AutoCanada is available at the
Company's website at www.autocan.ca and www.sedar.com.
SOURCE AutoCanada Inc.