AutoCanada Inc. announces credit facility increase to $190 Million
EDMONTON--AutoCanada Inc has increased its existing syndicated credit agreement by $60 million, bringing total availability to $190 million. The facility now includes HSBC Bank Canada, Alberta Treasury Branches and Royal Bank of Canada, with HSBC acting as administrative agent to the Credit Agreement. The revised Credit Agreement provides AutoCanada with the following facilities:
• a $70 million revolving operating facility which may be used for ongoing working capital and general corporate purposes including acquisitions;
• a $30 million revolving acquisition facility which may be used for the acquisition of auto dealerships and associated real estate;
• a $90 million non-revolving term facility which may be used to purchase owner occupied real estate, refinance existing real estate and to fund construction costs of new dealerships.
"We very much appreciate the support and continued confidence in our business plan from our current partners HSBC and ATB, as well as our new partner, RBC, as reflected in their agreement to increase the credit amounts under our Credit Agreement. RBC has been a partner of AutoCanada since our 2006 IPO and, as a very well established player in the Canadian auto retail market, we are very pleased to have them join the syndicate." stated Mr. Patrick Priestner, Chairman and CEO of AutoCanada.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 34 franchised dealerships in seven provinces and has over 1,600 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, Fiat, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, and Volkswagen branded vehicles. In 2013, our dealerships sold approximately 36,000 vehicles and processed approximately 364,000 service and collision repair orders in our 381 service bays during that time.