AUTOCANADA ANNOUNCES $300 MILLION OFFER OF SENIOR UNSECURED NOTES

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EDMONTON, Alta., January 20, 2022 /CNW/ – Auto Canada Inc. (“AutoCanada” or the “Company”) (TSX: ACQ), a leading North American group of multi-location automobile dealerships, is pleased to announce that it intends to offer $300 million (the “Offer”) of 7-year senior unsecured notes (the “Notes”). 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 United States. Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., and RBC Dominion Securities Inc. act as Joint Bookrunner Managers, ATB Capital Markets Inc. as a leader, and HSBC Securities (Canada) Inc., National Bank Financial Inc., Canaccord Genuity Corporation, Cormark Securities Inc., Stifel Nicolaus Canada Inc., Acumen Capital Finance Partners Limited and TD Securities Inc. act as Co-Managers of the Offer. The Company intends to use the net proceeds of the Offering to finance the repurchase of its $250 million 8.75% senior bonds due 2025 and reduce the outstanding balance of its syndicated credit facility.

In addition, the Company has received commitments to amend and extend its existing three-year credit facility through 2025, which amendments are expected to become effective no later than the closing of the Offering. The amended credit facility maintains the revolving facility at $225 million and includes a $1,060 million wholesale funding facility and a $15 million wholesale leasing facility, for a total bank facility of $1.3 billion. The Company is also pleased to welcome The Toronto-Dominion Bank to its existing syndicate of lenders which includes The Bank of Nova Scotia (Sole Bookrunner), Canadian Imperial Bank of Commerce, Royal Bank of Canada, Montreal, HSBC Bank Canada and Alberta Treasury branches.

On Auto Canada

Auto Canada is a leading North American multi-location automotive dealership group operating 78 franchised dealerships, comprising 28 brands, in eight provinces of Canada as well as a group Illinois, United States. Auto Canada currently sells Chrysler, Dodge, Jeep, RAM, DECREE, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, lincoln, Honda, Porsche and Acura. Additionally, the Company’s Canadian operations segment currently operates two used vehicle dealerships supporting the used digital retail division and four stand-alone collision centers (within our group of 18 collision centers). In 2020, our then-dealers sold approximately 66,000 vehicles and processed more than 756,000 service and collision repair orders at our 1,098 service bays generating revenue in excess of $3 billion.

Forward-looking statements

Certain statements contained in this press release are forward-looking statements and information (collectively “forward-looking statements”), within the meaning of applicable Canadian securities laws. We hereby provide cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in these forward-looking statements. Any statement that expresses or implies discussions of expectations, beliefs, plans, goals, assumptions of future events or performance (often, but not always, through the use of words or phrases such as ” will likely result”, “are expected”, “goal”, “commitments” “anticipate”, “expect”, “estimate”, “could”, “should”, “plan”, “seek”, “may “, “intend”, “probable”, “will”, “believe”, “shall” and similar expressions) are not historical facts and are forward-looking. In particular, this press release contains forward-looking statements regarding, among other things, the terms and completion of the Offering, the use of the net proceeds of the Offering and expected modifications to the Company’s existing credit facility and the expected timing of these amendments.

The forward-looking statements included in this press release are not guarantees of future performance and should not be relied upon unduly. Readers are cautioned that forward-looking statements are based on current expectations, estimates and projections which, by their nature, involve a number of known and unknown risks and uncertainties which could cause actual results to differ. materially from those anticipated and described in the forward-looking statements. – look at the statements. These known and unknown risks and uncertainties include, but are not limited to: potential changes to the regulatory and legislative environment; political uncertainty and instability North America and internationally; interest and tax rate volatility; operational risks inherent in the automotive retail industry; and changes in general economic conditions, including capital and credit markets.

Forward-looking statements may involve estimates and assumptions and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict. Accordingly, these factors could cause actual results to differ materially from those expressed in the forward-looking statements. In particular, in presenting its forward-looking statements, Auto Canada made assumptions regarding, among other things: the relative stability of general economic conditions in North America; and regulatory and legislative conditions. Accordingly, these forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this press release.

Auto Canada cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The Company’s Annual Information Form and other documents filed with the securities authorities (available on the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could affect actual results and which are incorporated herein by reference.

Further, any forward-looking statement speaks only as of the date such statement is made, and, except as required by applicable law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date such statement is made or to reflect the occurrence of unforeseen events. New factors emerge from time to time, and it is not possible for management to anticipate all of these factors and assess in advance the impact of each of these factors on our business or the extent to which any one factor , or a combination of factors, could cause actual results to differ materially from those contained in the forward-looking statements.

Additional information

Additional information about Auto Canada is available on the Company’s website at www.autocan.ca and www.sedar.com.

THE SOURCE Auto Canada Inc.

© Canada Newswire, source Canada Newswire English

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