AutoCanada Inc. Intends to Offer an Additional $100 Million Aggregate Principal Amount of its Existing 8.75% Senior Unsecured Notes Due 2025
April 14, 2021 at 08:12 am EDT
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AutoCanada Inc. announced that it intends to offer an additional $100 million aggregate principal amount of its existing 8.75% senior unsecured notes due 2025. The Notes will be offered and sold to "accredited investors" in certain provinces of Canada on a private placement basis. Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc. are acting as Joint Bookrunning Managers, HSBC Securities (Canada) Inc. as Lead Manager, and along with ATB Capital Markets Inc., Canaccord Genuity Corp., Cormark Securities Inc., Stifel Nicolaus Canada Inc., Acumen Capital Finance Partners Limited, and National Bank Financial Inc. who are acting as Co-Managers for the Offering. 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. In addition, effective April 14, 2021, the Company has amended and extended its existing credit facility for three years to 2024. The amended credit facility increases the revolving facility by $50 million to $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.
AutoCanada Inc. is a Canada-based multi-location franchised automobile dealership company. The Company offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services, extended service contracts, vehicle protection products, after-market products and auction services. The Company also arranges financing and insurance for vehicles purchased by its customers through third-party finance and insurance sources. Its segments include Canadian Operations and U.S. Operations. It operates 83 franchised dealerships, comprising of 28 brands, in eight provinces in Canada as well as a group in Illinois, United States of America. 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, and Honda brands.