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AutoCanada Prices Previously Announced Private Offering of $125,000,000 Senior Notes
AutoCanada Prices Previously Announced Private Offering of $125,000,000 Senior Notes ...
About this update from Autocanada Inc.
[{"type":"text","content":"\n\n\n\nAutoCanada Prices Previously Announced Private Offering of $125,000,000 Senior Notes\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. 31, 2020\n\n\n\nEDMONTON, Jan. 31, 2020 /CNW/ - AutoCanada Inc. (\"AutoCanada\" or the \"Company\") (TSX: ACQ) is pleased to announce 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.\n\n \n \n\n \nPaul Antony, Executive Chairman of the Company, added, \"We are very pleased with the outcome of the offering and support from investors upon hearing of the progress on both the Go Forward initiatives in Canada and the U.S., and improvements made to the balance sheet.\"\nThe 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. \nOn 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.\nSubject 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. \nAbout AutoCanada\nAutoCanada is a leading North American multi-location automobile dealership group currently operating 63 franchised dealerships, comprised of 27 brands, in eight provinces in Canada...