AutoCanada announced it has entered into an amended and restated credit agreement with HSBC Bank Canada, Alberta Treasury Branches and Royal Bank of Canada, with HSBC Bank Canada acting as administrative agent for the lenders, for a $200 million revolving credit facility that will replace its existing $190 million credit facility with the same syndicate of lenders.
AutoCanada also announced that it has completed its previously announced private offering of $150 million aggregate principal amount of 5.625% senior unsecured notes due May 25, 2021. The notes were 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 was underwritten by RBC Capital Markets and Scotiabank, as joint bookrunning managers, in a syndicate that included HSBC Securities (Canada), Clarus Securities, CIBC World Markets, Canaccord Genuity, Cormark Securities and GMP Securities.
AutoCanada is a Canadian automobile dealership group, operating 34 franchised dealerships in seven provinces and has approximately 1,600 employees.