AutoCanada Inc. Announces Private Offering of $125,000,000 Senior Notes
January 01, 2020 at 12:47 am IST
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AutoCanada Inc. announced that it has priced its previously announced private placement of $125 million 5-year Senior Unsecured Notes (the "Notes"). Interest on the Notes will accrue at the rate of 8.75% per annum and will be payable semi-annually in arrears in equal semi-annual installments on February 11 and August 11 of each year, beginning on August 11, 2020. The Notes are being sold at a price of 99.011% and will mature on February 11, 2025. The Notes are being offered and sold to "accredited investors" in certain provinces of Canada and to non-U.S. persons on a private placement basis. On January 28, 2020, the Company announced that it had launched an offer (the "Tender Offer") to purchase for cash all of the Company's outstanding 5.625% Senior Notes due May 25, 2021 (the "2021 Notes"). AutoCanada expects to use the net proceeds from the sale of the Notes together with additional borrowings under the Company's recently announced amended credit facility to fund purchases of the 2021 Notes under the Tender Offer, including the redemption of any 2021 Notes that remain outstanding after the completion of the Tender Offer. Subject to the receipt of all necessary approvals and the satisfaction of customary conditions, the private placement of the Notes is expected to close on February 11, 2020.
AutoCanada Inc. is a Canada-based multi-location franchised automobile dealership company. It offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services. Its segments include Canadian Operations and U.S. Operations. It operates over 85 franchised dealerships, comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, United States. It 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, Acura, Honda and Porsche branded vehicles. Its Canadian Operations segment operates three used vehicle dealerships and one used vehicle auction business supporting the Used Digital Division, 13 RightRide division locations, and 11 stand-alone collision centers within its group of 28 collision centers.