trending Market Intelligence /marketintelligence/en/news-insights/trending/p4j1quow_pshu1xwa09dcq2 content esgSubNav
In This List

Axis Auto Finance to acquire Trend Financial in C$29.3M deal

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Axis Auto Finance to acquire Trend Financial in C$29.3M deal

Axis Auto Finance Inc. has agreed to acquire independent, subprime automotive finance company Trend Financial Corp. for about C$29.3 million.

Axis plans to fund the transaction through a private placement offering of about C$6.5 million worth of subscription receipts and about C$17.5 million worth of extendible convertible debentures. The offering is scheduled to close on or about March 22.

The subscription receipts will be sold at 70 Canadian cents apiece for gross proceeds of about C$6.5 million. Each subscription receipt will entitle the holder to receive 1 common share after the deal closes.

The purchase price will consist of a cash payment of about C$23.9 million, about 6.95 million common shares and 6.6 million common share purchase warrants. Trend Financial vendors have agreed to set aside C$3 million of the cash portion of the purchase price to buy debentures from Axis.

The transaction is expected to close on or about April 2 and is expected to be immediately accretive to Axis' adjusted earnings and book value.

INFOR Financial Inc. acted as financial adviser and Dentons Canada LLP served as legal counsel to Axis in connection with the acquisition. The subscription receipt and debenture offering will be conducted through a syndicate of underwriters led by Canaccord Genuity Corp. and INFOR Financial.

Additionally, Axis has appointed Todd Hudson CEO, effective March 15. He most recently served as COO of ECN Capital Corp.