Automotive Finco board mulls redemption of 6.75% convertibles

By Sarah Lizee

Olympia, Wash., July 23 – Automotive Finco Corp.’s board is exploring is the redemption of its outstanding 6.75% convertible debentures, according to a press release.

Automotive Finance LP received notice from DH Finance LP, GTAN Finance LP, OH Finance LP and WH Finance LP that they intend to repay their existing loans to Automotive Finance, which should ultimately result in a distribution to Automotive Finance of $76 million plus any accrued interest.

In light of that, the board is considering options to enhance shareholder value, including the potential redemption.

Automotive said the board is further considering its options relating to net funds received after the payment of fees and expenses relating to the possible redemption and any related transactions. A portion of the funds may be reinvested, held for future acquisitions, deployed as part of a substantial issuer bid or any combination of those.

Automotive Finco is a Toronto-based investment company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.