EDMONTON, AB, April 15, 2021 /CNW/ - AutoCanada Inc.
("AutoCanada" or the "Company") (TSX: ACQ), is
pleased to announce that it has increased and priced its previously
announced offering (the "Offering") of senior notes. The Offering
consists of an additional $125
million aggregate principal amount of its existing 8.75%
senior unsecured notes due February 11,
2025 (the "Notes") at a price of 106.625% plus
accrued interest from and including February
11, 2021, which was increased from the previously announced
offering size of $100 million. The
Notes are being offered and sold to "accredited investors" in
certain provinces of Canada on a
private placement basis.
Paul Antony, Executive Chairman
of the Company, stated, "We are very pleased with the successful
outcome of the offering, particularly the pricing at a premium to
par, resulting in a yield of 5.595% which substantially reduces our
cost of debt on the incremental notes relative to the initial
issuance. We see this pricing improvement as reflecting continued
support from all of our investors in response to our strong
operating performance, significant available market opportunities,
and balance sheet strength. We look forward to building on our
momentum and growing long-term value for shareholders."
The Offering is expected to close on April 22, 2021, subject to the receipt of all
necessary approvals and satisfaction of customary closing
conditions.
Proceeds of the Offering will be used by the Company to reduce
the outstanding balance under its syndicated credit facility and
for general corporate purposes, including acquisitions.
About AutoCanada
AutoCanada is a leading North American multi-location automobile
dealership group currently operating 66 franchised dealerships,
comprised of 27 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 and Porsche branded vehicles.
Additionally, the Company's Canadian operations segment currently
operates one used vehicle dealership supporting the Used Digital
Retail Division, and two stand-alone collision centres (within our
group of 17 collision centres). In 2020, our 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
timing and completion of the Offering and the use of net proceeds
of 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: 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; that AutoCanada will receive
the approvals needed to complete the Offering; 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.