EDMONTON, Nov. 5, 2013 /CNW/ - AutoCanada Inc. ("AutoCanada" or the
"Company") (TSX: ACQ) announced today that it has entered into a Credit
Agreement with HSBC Bank Canada ("HSBC") and Alberta Treasury Branches
("ATB") with HSBC acting as administrative agent to the Credit
Agreement. The Credit Agreement provides AutoCanada with the following
a $50 million revolving operating facility which may be used for ongoing
working capital and general corporate purposes including acquisitions;
a $20 million revolving acquisition facility which may be used for the
acquisition of auto dealerships and associated real estate;
a $60 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 from our long term partner, HSBC,
as well as our new partner, ATB, in completing the syndication. The
new facilities will provide AutoCanada with the ability to complete
future acquisitions and fund the real estate associated with these
purchases, and we look forward to a long term partnership with both of
these two well established Canadian banks." stated Mr. Patrick
Priestner, Chairman and CEO of AutoCanada.
As well, the Company is pleased to advise that it has entered into an
Asset Purchase Agreement to purchase eleven real estate properties that
it currently leases from CanadaOne Auto Group, a related entity, for a
purchase price of $57.8 million, plus transaction costs and taxes, of
which the full amount will be debt financed. The transaction is
expected to close in five business days with an effective purchase date
of October 31, 2013.
Commenting on the transaction, Mr. Gordon Barefoot, Lead Director and
Chair of the Independent Real Estate Committee of AutoCanada, stated,
"The Company is pleased to have entered into this transaction and looks
forward to the significant cash flow savings to the Company, as well as
the greater property management control the purchase will provide."
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.
Additional information about AutoCanada Inc. is available at www.sedar.com and the Company's website at www.autocan.ca.
SOURCE: AutoCanada Inc.
For further information:
Jeff Christie, CA
Phone: (780) 732-7164