Automotive Finco Corp. Announces Redemption of Convertible Debentures
October 07 2019 - 7:00AM
Automotive Finco Corp. (TSX-V: AFCC) (“
AFCC” or
the “
Company”) is pleased to announce that it has
issued a notice of redemption to holders of its currently
outstanding 6.75% convertible senior unsecured debentures maturing
on June 30, 2022 (the “
Debentures”). As set out in
the notice of redemption, AFCC intends to redeem all of the
Debentures issued and outstanding as of December 16, 2019 (the
“
Redemption Date”).
Each Debenture is redeemable at a redemption
price equal to the aggregate of 103% of $1,000 and all accrued and
unpaid interest thereon up to but excluding the Redemption Date.
All interest on the Debentures will cease to be payable from and
after the Redemption Date. As of close of business on October 7,
2019, there was $30,615,000 principal amount of Debentures issued
and outstanding.
Pursuant to the terms of the Debentures, holders
of the Debentures have the right, prior to the Redemption Date, to
convert their Debentures into common shares of AFCC at a conversion
price of $3.50 per common share. Holders of Debentures should refer
to the indenture dated June 23, 2017 (the
“Indenture”) for additional information regarding
the redemption process and the right of holders to convert their
Debentures into common shares. The Indenture is available under the
Company’s SEDAR profile at www.sedar.com.
The board of directors of the Company is
continuing to consider its options relating to the Company’s cash
position after the payment of fees and expenses relating to the
redemption of the Debentures. A portion of these funds may be
reinvested, held for future acquisitions, deployed as part of a
substantial issuer bid or any combination of the foregoing. The
Company does not intend to set a definite schedule to complete its
evaluation of the various options and cautions that there are no
assurances or guarantees that the process will result in a
particular action or, if an action is undertaken, the terms or
timing of such an action or actions.
The Company does not intend to comment further
until the board of directors has approved a specific transaction or
action plan, or otherwise determines that disclosure is necessary
or appropriate.
About Automotive Finco Corp.
Automotive Finco Corp is a high growth specialty
finance company focused exclusively on the auto retail sector.
Through its investment in Automotive Finance LP, AFCC has exposure
to a business providing long term, debt based acquisition financing
to auto dealerships across the globe, with an initial focus on
Canada. In addition to its interest in Automotive Finance LP, AFCC
may also pursue other direct investments and financing
opportunities across the auto retail sector.
For further information, please refer to AFCC’s
website: www.autofincocorp.com.
For further information, please contact:
Kuldeep Billan, Email:
kbillan@autofincocorp.com
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This news release contains certain
forward-looking statements within the meaning of applicable
securities laws relating to the Company’s plans, objectives,
expectations and intentions. The use of any of the words
"expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans",
"intends", "confident", "might" and similar expressions are
intended to identify forward-looking information or
statements. Various assumptions were used in drawing the
conclusions or making the projections contained in the
forward-looking statements throughout this news release. The
forward-looking information and statements included in this news
release are not guarantees of future performance and should not be
unduly relied upon. Forward-looking statements are based on current
expectations, estimates and projections that involve a number of
risks and uncertainties, which could cause actual results to differ
materially from those anticipated and described in the
forward-looking statements. In particular, but without limiting the
foregoing, this news release contains forward-looking information
and statements pertaining to: the expected timing and details of
the redemption of the Debentures; statements regarding the
Company’s strategic plan; the likelihood that the Company will be
able to identify and undertake alternatives which enhance
shareholder value; the Company’s potential implementation of a
substantial issuer bid (including the amounts to be deployed, the
timing, price and size of any offers to debenture holders or
shareholders). There can be no assurance that such information will
prove to be accurate, and actual results and future events could
differ materially from those anticipated in such information. A
description of assumptions used to develop such forward-looking
information and a description of risk factors that may cause actual
results to differ materially from forward-looking information can
be found in AFCC’s disclosure documents on the SEDAR website at
www.sedar.com. AFCC does not undertake to update any forward
looking information except in accordance with applicable securities
laws.
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