EDMONTON, April 24, 2014 /CNW/ - AutoCanada Inc. ("AutoCanada" or the
"Company") (TSX: ACQ) announced today that it has increased its
existing syndicated floorplan facility ("Floorplan Facility") with The
Bank of Nova Scotia ("Scotiabank") and The Canadian Imperial Bank of
Commerce ("CIBC") by $200 million, bringing total availability to $550
million. All significant terms and conditions of the previous facility
remain unchanged. AutoCanada also announced today that Chrysler Canada
has reduced the minimum equity interest that it requires CanadaOne Auto
Group Ltd. ("CAG"), a company controlled by Mr. Pat Priestner, to hold
in AutoCanada until January 1, 2015, to a 5% equity interest.
Previously CAG was required to maintain a minimum 20% equity interest
until January 1, 2015, at which time the minimum ownership requirement
"Earlier this year, the Company announced its intention to acquire an
increased number of dealerships over the next two years. Recognizing
the increased need for inventory financing associated with a higher
rate of growth, Scotiabank, as lead syndicate partner and agent,
approved a $200 million increase to the Floorplan Facility to a total
of $550 million in availability. We are extremely pleased to be
partnered with Scotiabank and CIBC and would like to give recognition
to these two financial institutions for their continued support of our
growth strategy and the inherent confidence they have in the future of
AutoCanada." stated Pat Priestner, Chairman and CEO of AutoCanada. Mr.
Pat Priestner further noted that, "Although the minimum equity interest
requirement would have expired at year-end in any event, the Company
appreciates Chrysler Canada accommodating us in providing this
additional flexibility and capacity regarding our financing
alternatives during the remaining months of 2014, enabling us to take
advantage of continued strength of our deal pipeline."
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. 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