AutoCanada Inc. Announces the Completion of New $350 Million Floorplan Credit Agreement
EDMONTON, Sept. 30, 2013 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ) announced today that it has completed a new $350 million syndicated floorplan credit facility (the "Facility") with The Bank of Nova Scotia ("BNS") and the Canadian Imperial Bank of Commerce ("CIBC") with BNS serving as administrative agent to the Facility. The Facility can be expanded to $450 million in total availability upon credit approval of the syndicate of lenders. The Facility includes a 15 basis point reduction to the interest rate from the Company's previous facility to a new rate of Bankers' Acceptance plus 1.15% (currently 2.37%) per annum. The financial covenants and repayment terms of the Facility remain consistent with the Company's previous floorplan facility with BNS.
Commenting on the transaction, Patrick Priestner, Chairman and CEO of AutoCanada, stated, "The Company would like to thank both Scotiabank and CIBC for their support in completing the syndication. We are pleased to further grow our excellent partnership with Scotiabank, and look forward to developing a long-term relationship with our new financial partner, CIBC. The new facility will provide our Company with a cost effective means of financing the inventory of our current and future dealerships and will assist us in executing upon our stated growth plan."
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 32 franchised dealerships in six provinces and has over 1,500 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi and Volkswagen branded vehicles. In 2012, our dealerships sold approximately 30,000 vehicles and processed approximately 309,000 service and collision repair orders in our 333 service bays during that time.
SOURCE AutoCanada Inc.For further information:
Jeff Christie, CA
Phone: (780) 732-7164