EDMONTON, July 26 /CNW/ - AutoCanada Inc. ("AutoCanada") (TSX:ACQ) announced today that it has signed an amendment to its existing credit facility with HSBC Bank Canada ("HSBC") whereby HSBC increased the availability of the existing Revolving Term Loan facility from $20 million to $30 million. The repayment terms and the security of the Revolving Term Loan facility remain unchanged with the exception of the interest rate which was reduced to HSBC Prime Rate plus 1.25% from HSBC Prime Rate plus 1.65%.
Pat Priestner, CEO of AutoCanada Inc. stated: "We are very pleased to have negotiated both an increase to the amount available under our credit facility as well as a reduction in the interest rate with one of our two primary lenders. Both of these changes to our credit facility demonstrate increased confidence in our business by HSBC and our mutual desire to continue our long term relationship."
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 23 franchised dealerships in British Columbia, Alberta, Manitoba, Ontario, New Brunswick and Nova Scotia. In 2009, the franchised automobile dealerships sold approximately 23,000 vehicles and processed approximately 300,000 service and collision repair orders in our 331 service bays. We have grown, and intend to continue to grow, our business through the acquisition of franchised automobile dealerships in key markets, the organic growth of our existing dealerships, the opening of new franchised automobile dealerships, or "Open Points", and the management of franchised automobile dealerships.
Additional information about AutoCanada Inc. is available at the Company's website at www.autocan.ca and www.sedar.com.
SOURCE AutoCanada Inc.
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