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AutoCanada announces offering of $125,000,000 Senior Notes, extension of credit facility for three years and selected preliminary 2019 fourth quarter results
AutoCanada announces offering of $125,000,000 Senior Notes, extension of credit facility f...
About this update from Autocanada Inc.
[{"type":"text","content":"\n\n\n\nAutoCanada announces offering of $125,000,000 Senior Notes, extension of credit facility for three years and selected preliminary 2019 fourth quarter results\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nEDMONTON, Jan. 28, 2020\n\n\n\nEDMONTON, Jan. 28, 2020 /CNW/ - AutoCanada Inc. (\"AutoCanada\" or the \"Company\") (TSX: ACQ), a leading multi-location North American automobile dealership group, today announced that it intends to complete a $125 million offering (the \"Offering\") of 5-year Senior Unsecured Notes (the \"Notes\"). The Notes will be offered and sold to \"accredited investors\" in certain provinces of Canada and to non-U.S. persons on a private placement basis. Scotia Capital Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc. are acting as Joint Bookrunning Managers for the Offering. Proceeds of the Offering will be used to refinance the Company's existing 5.625% Senior Notes due May 25, 2021 (the \"2021 Notes\").\n\n \n \n\n \nConcurrent with, and conditional on, the closing of the Offering, the Company plans to amend and extend its existing credit facility for three years. The amended credit facility will include a $175 million revolving credit facility, a $750 million wholesale floorplan financing facility and a $25 million wholesale leasing facility, for total aggregate bank facilities of $950 million (the \"New Credit Facilities\").\nAutoCanada intends to use the net proceeds of the Offering, together with borrowings under the New Credit Facility, to fund a cash tender offer (the \"Tender Offer\") for the purchase of any or all of the 2021 Notes and the redemption of any 2021 Notes not purchased under the Tender Offer. Further details with respect to the Tender Offer are in the Company's press release dated January 28, 2020 announcing the Tender Offer and in the Company's Offer to Purchase dated January 28, 2020 and the related Letter of Transmittal.\nPaul Antony, Executive Chairman of the Company, stated, \"We are proud of the progress that the AutoCanada team has made in addressing our balance sheet and ...