TORONTO, Oct. 07, 2019 (GLOBE NEWSWIRE) -- Automotive Finco Corp. (AFCC.V) (“AFCC” or the “Company”) is pleased to announce that it has issued a notice of redemption to holders of its currently outstanding 6.75% convertible senior unsecured debentures maturing on June 30, 2022 (the “Debentures”). As set out in the notice of redemption, AFCC intends to redeem all of the Debentures issued and outstanding as of December 16, 2019 (the “Redemption Date”).
Each Debenture is redeemable at a redemption price equal to the aggregate of 103% of $1,000 and all accrued and unpaid interest thereon up to but excluding the Redemption Date. All interest on the Debentures will cease to be payable from and after the Redemption Date. As of close of business on October 7, 2019, there was $30,615,000 principal amount of Debentures issued and outstanding.
Pursuant to the terms of the Debentures, holders of the Debentures have the right, prior to the Redemption Date, to convert their Debentures into common shares of AFCC at a conversion price of $3.50 per common share. Holders of Debentures should refer to the indenture dated June 23, 2017 (the “Indenture”) for additional information regarding the redemption process and the right of holders to convert their Debentures into common shares. The Indenture is available under the Company’s SEDAR profile at www.sedar.com.
The board of directors of the Company is continuing to consider its options relating to the Company’s cash position after the payment of fees and expenses relating to the redemption of the Debentures. A portion of these funds may be reinvested, held for future acquisitions, deployed as part of a substantial issuer bid or any combination of the foregoing. The Company does not intend to set a definite schedule to complete its evaluation of the various options and cautions that there are no assurances or guarantees that the process will result in a particular action or, if an action is undertaken, the terms or timing of such an action or actions.
The Company does not intend to comment further until the board of directors has approved a specific transaction or action plan, or otherwise determines that disclosure is necessary or appropriate.
About Automotive Finco Corp.
Automotive Finco Corp is a high growth specialty finance company focused exclusively on the auto retail sector. Through its investment in Automotive Finance LP, AFCC has exposure to a business providing long term, debt based acquisition financing to auto dealerships across the globe, with an initial focus on Canada. In addition to its interest in Automotive Finance LP, AFCC may also pursue other direct investments and financing opportunities across the auto retail sector.
For further information, please refer to AFCC’s website: www.autofincocorp.com.
For further information, please contact:
Kuldeep Billan, Email: email@example.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain forward-looking statements within the meaning of applicable securities laws relating to the Company’s plans, objectives, expectations and intentions. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to: the expected timing and details of the redemption of the Debentures; statements regarding the Company’s strategic plan; the likelihood that the Company will be able to identify and undertake alternatives which enhance shareholder value; the Company’s potential implementation of a substantial issuer bid (including the amounts to be deployed, the timing, price and size of any offers to debenture holders or shareholders). There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in AFCC’s disclosure documents on the SEDAR website at www.sedar.com. AFCC does not undertake to update any forward looking information except in accordance with applicable securities laws.