EDMONTON, AB, Feb. 7, 2022 /CNW/ - AutoCanada Inc.
("AutoCanada" or the "Company") (TSX: ACQ), is
pleased to announce that it has closed its previously announced
private placement offering (the "Offering") of senior notes.
The Offering consisted of $350
million aggregate principal amount of 5.75% senior unsecured
notes due February 7, 2029, which was
increased from the initial offering size of $300 million.
The proceeds of the Offering will be used by the Company to fund
the redemption of its outstanding $250
million 8.75% Senior Notes due 2025 (the "2025
Notes"), to reduce the outstanding balance under its syndicated
credit facility and for general corporate purposes including
acquisitions. 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.
In addition, as previously announced, the Company has amended
and extended its existing credit facility for three years to
2025. 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.
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", "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
use of net proceeds of the Offering and the redemption of the 2025
Notes.
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.
Forward-looking statements 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,
actual results or outcomes may differ materially from those
expressed in the forward-looking statements. In particular, in
presenting its forward-looking statements, AutoCanada has made
assumptions respecting, amongst other things, the relative
stability of general North American economic conditions.
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. The forward-looking statements
contained in this press release speak only as of the date hereof
and AutoCanada assumes no obligation to publicly update or revise
them to reflect new events or circumstances, except as may be
required pursuant to applicable securities laws.
Additional Information
Additional information about AutoCanada is available at the
Company's website at www.autocan.ca and www.sedar.com.
SOURCE AutoCanada Inc.