New Issue: AutoCanada sells C$150 million seven-year notes at par to yield 5 5/8%

By Paul A. Harris

Portland, Ore., May 14 - AutoCanada Inc. priced C$150 million seven-year senior notes (/B+/) at par to yield 5 5/8% on Wednesday, according to a market source.

The yield printed at the tight end of yield talk in the 5¾% area.

RBC Capital Markets and Scotia Capital were the joint bookrunners.

Proceeds will be used to refinance debt and for general corporate purposes.

The issuer is a franchise automobile dealership group based in Edmonton, Alta.

Issuer:	AutoCanada Inc.
Amount:	C$150 million
Maturity:	May 25, 2021
Securities:	Senior notes
Bookrunners:	RBC Capital Markets, Scotia Capital
Co-lead manager:	HSBC
Co-managers:	Clarus, CIBC World Markets, Canaccord, Cormark, GMP
Coupon:	5 5/8%
Price:	Par
Yield:	5 5/8%
Spread:	374 bps
Call protection:	Three years
Equity clawback:	35% at 105.625 until May 25, 2017
Change-of-control put:	101%
Trade date:	May 14
Settlement date:	May 22
Rating:	Standard & Poor's: B+
Distribution:	Rule 144A in the United States, private placement in Canada
Price talk:	5¾% area

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