AutoCanada Inc. Private Offering and Pricing of Senior Unsecured Notes
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
EDMONTON, May 14, 2014 /CNW/ - AutoCanada Inc. ("AutoCanada") (TSX:ACQ) announced today that it has priced a private offering of $150 million aggregate principal amount of 5.625% senior unsecured notes due May 25, 2021 (the "Notes"). The Notes will be issued at par. AutoCanada intends to use the net proceeds from the offering to repay all of the outstanding indebtedness under its existing syndicated credit facility and for general corporate purposes. The offering is expected to close on May 22, 2014.
The offering is being underwritten by RBC Capital Markets and Scotiabank, as joint bookrunning managers, in a syndicate that includes HSBC Securities (Canada) Inc., Clarus Securities Inc., CIBC World Markets Inc., Canaccord Genuity Corp., Cormark Securities Inc. and GMP Securities L.P.
The Notes will be sold in Canada on a private placement basis pursuant to certain prospectus exemptions. The Notes will be sold in the United States and to U.S. Persons only to "qualified institutional buyers" in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to persons other than U.S. Persons in reliance on Regulation S under the Securities Act. The offer and sale of the Notes will not be registered under the Securities Act or any state securities laws and the Notes may not be offered or sold in the United States or to, or for the account or benefit of, U.S. Persons, absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About AutoCanada
AutoCanada is one of Canada's largest multi-location automobile dealership groups, operating 34 franchised dealerships in seven provinces and has approximately 1,600 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi and Volkswagen branded vehicles. In 2013, AutoCanada dealerships sold approximately 36,000 vehicles and processed approximately 364,000 service and collision repair orders in its 381 service bays during that time.
Additional information about AutoCanada is available at www.sedar.com and on its website at www.autocan.ca.
Forward Looking Statements
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. All statements other than statements of historical fact contained in this press release may be forward-looking statements and forward-looking information. In particular, forward-looking information and statements in this press release include, but are not limited to, the timing and completion of the offering of Notes and the use of the net proceeds from the offering. These forward-looking statements and information are based on certain key expectations and assumptions made by AutoCanada, including the assumption that the offering will be completed. Although AutoCanada believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as AutoCanada cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risk that the offering of Notes will not be completed as proposed or at all and general economic, market and business conditions. Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect AutoCanada's operations, financial results and the completion of the offering are included in AutoCanada's annual information form and the other disclosure documents filed by AutoCanada with securities regulatory authorities which may be accessed through the SEDAR website at www.sedar.com. The forward-looking statements and information contained in this press release are made as of the date hereof and AutoCanada does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE: AutoCanada Inc.
Jeff Christie, CA
Vice-President, Finance
Phone: (780) 732-7164
Email: [email protected]
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