Automotive Finco option partly used, convertibles now C$10.62 million

New York, June 26 – Automotive Finco Corp. said the underwriters of its recent C$10 million sale of convertible unsecured subordinated debentures exercised C$615,000 of the over-allotment option, raising the deal to C$10,615,000.

The company originally priced C$10 million of the convertibles on May 30 with a 6.75% coupon and a C$3.50 conversion price, representing a 30% premium over the C$2.70 price per share in the concurrent sale of 3,705,000 common shares.

The stock sale raised C$20,003,500.

Automotive Finco also sold C$20 million of convertibles on the same terms in a private placement.

Canaccord Genuity Corp. was the bookrunner for the public sales of convertibles and stock.

No additional shares were sold under the greenshoe.

Proceeds will be used to fund an investment in affiliate companies and for general corporate and working capital purposes.

The debentures were expected to begin trading on the TSX Venture Exchange on Monday under the symbol “AFCC.DB.”

Automotive Finco is a Toronto-based investment company.

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