AutoCanada Income Fund completes initial public offering
Date Closed
May 11, 2006
Lead Office
Vancouver
Value
102.10 Million CAD
On May 11, 2006, AutoCanada Income Fund of Edmonton, Alberta completed its initial public offering of 10,209,500 units for gross proceeds of C$102,095,000. AutoCanada purchased, and will operate, the franchised automobile dealership business of Canada One Auto Group, who retained a 49.6% interest in the Fund. As part of the transaction, DaimlerChrysler Financial Services Canada Inc. provided a C$233,125,000 line of credit to AutoCanada for inventory, working capital and acquisition needs.
AutoCanada is one of Canada’s largest multi-location automobile dealership groups, currently operating 46 franchised dealerships in eight provinces and has over 2,700 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, BMW and MINI branded vehicles.
McCarthy Tétrault LLP advised AutoCanada with a team led by Richard Balfour.