AutoCanada Income Fund - Announces the signing of an amended credit agreement with Chrysler Financial Canada



    EDMONTON, May 6 /CNW/ - AutoCanada Income Fund ("AutoCanada")
(TSX:ACQ.UN) signed an amendment to the current credit agreement with Chrysler
Financial Canada ("CFC") which provides the Fund with its revolving floorplan
facility and revolving term facility. CFC confirmed that it has signed the
amended agreement on May 6, 2009. The amended agreement provides the Fund with
a non-revolving fixed term facility in the amount of $21.6 million to replace
the existing revolving term facility. The non-revolving fixed term facility is
repaid in monthly interest and principal repayments, amortized over a seven
year period, and bears interest at the rate of 8.5 percent per annum for the
first year of the term loan only (interest rates for each subsequent year will
be subject to an annual rate renewal as determined by CFC). The fixed charge
ratio has been amended to 1.20 for the second, third, and fourth quarters of
2009. The fixed charge ratio will then return to 1.75 for the first quarter of
2010 and beyond. The interest rates of the revolving floorplan facility were
also amended to Chrysler Financial Canada's standard floorplan interest rate
that it charges to other Chrysler dealerships in Canada.
    Pat Priestner, CEO, stated "Although it remains for AutoCanada to resolve
with its financier its temporary suspension of floor plan financing, we are
pleased to have been able to resolve our revolving term facility financial
covenants on a basis that provides for competitive rates for the new term loan
and floor plan rates on existing inventory that are competitive within the
industry. Under this amendment, the floorplan rate for new and used inventory
will range between 4.25% and 5% based on today's rates."

    
    About AutoCanada
    ----------------
    

    AutoCanada is Canada's only publicly traded entity with interests
exclusively in the operation of franchised automobile dealerships. Through its
53% interest in AutoCanada LP, it presently owns or manages 22 franchised
automobile dealerships in six provinces and has over 1,100 employees. Through
its owned and managed dealerships, it currently sells Chrysler, Dodge,
Jeep(R), Infiniti, Nissan, Hyundai, Subaru, Volkswagen and Mitsubishi branded
vehicles. In 2008, its owned and managed dealerships sold approximately 23,700
vehicles, processed approximately 277,300 service and collision repair orders
in 284 service bays, and generated revenue of approximately $827 million.
    Additional information about AutoCanada Income Fund is available at
www.sedar.com and the Fund's website at www.autocan.ca.





For further information:

For further information: Tom Orysiuk, CA, Executive Vice-President and
Chief Financial Officer, Phone: (780) 732-3139, Email: torysiuk@autocan.ca

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AUTOCANADA INCOME FUND

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