EDMONTON, AB, Jan. 20, 2022 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), a leading multi-location North American automobile dealership group, is pleased to announce that it has upsized and priced its previously announced offering (the "Offering") of senior notes. The Offering consists of $350 million aggregate principal amount of senior unsecured notes due February 7, 2029 (the "Notes"), which is an increase from the previously announced offering size of $300 million. Interest on the Notes will accrue at the rate of 5.75% per annum and will be payable semi-annually in arrears in equal semi-annual installments on February 7 and August 7 of each year (or if such day is not a business day, the next following business day), beginning on August 7, 2022.
Paul Antony, Executive Chairman of the Company, stated, "We are very pleased with the successful outcome of the offering and continued support from our investors in response to our strong operating and financial performance, significant available market opportunities, and balance sheet strength. We look forward to continuing to build on our momentum and growing long-term value for shareholders."
The Company intends to use the net proceeds of the Offering of the Notes to fund the redemption of its outstanding $250 million 8.75% Senior Notes due 2025 ("2025 Notes"), to reduce the outstanding balance under its syndicated credit facility and for general corporate purposes including acquisitions.
AutoCanada is giving notice of redemption of all outstanding 2025 Notes. 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. The total redemption amount payable for each $1,000 principal amount of the 2025 Notes will be $1,043.75, plus accrued and unpaid interest.
The Notes will be offered and sold on a private placement basis to "accredited investors" in certain provinces of Canada and "qualified institutional buyers" in the United States. Subject to receipt of all necessary approvals and satisfaction of customary conditions, the Offering is expected to close on February 7, 2022.