AutoCanada grosses $75M on common share offering
AutoCanada said this week its latest offering of common shares earned the company $75 million, a sum the dealer group says it will use to cut down on debt under its revolving credit facility.
AutoCanada had previously announced it issues 2,950,000 common shares at a price of $25.50 per share.
“The company will use the net proceeds of the offering to reduce indebtedness under its revolving credit facility, which may subsequently be redrawn and applied as needed to fund future capital expenditures, including the potential acquisition of additional dealerships, and for general corporate and working capital purposes,” AutoCanada management shared.
The dealer group first announced this plan back in November, when management said common shares would be offered under a short form prospectus to be filled in each province.
The offering was underwritten by a syndicate of underwriters led by RBC Capital Markets and Scotiabank and included CIBC World Markets, Clarus Securities, Canaccord Genuity, Cormark Securities, HSBC Securities (Canada), AltaCorp Capital, GMP Securities and National Bank Financial.
AutoCanada, one of the largest dealer groups in the country, touts 54 franchised dealerships and plans to expand more into Eastern Canada.