EDMONTON, Nov. 18, 2015 /CNW/ - AutoCanada Inc. ("AutoCanada") (TSX: ACQ) has reached an agreement with its lending syndicate to increase the size of its revolving credit facility from $200 million to $250 million. Advances under the increased credit facility are subject to increased borrowing base security. AutoCanada has provided unencumbered real estate assets, which are presently being securitized, and will be sufficient to make the full amount of the credit facility available to AutoCanada. The term of the credit facility remains unchanged.
The increase of the credit facility follows the amendment of certain lending covenants in the credit facility to bring the facility in line with industry standards. This includes an increase of the senior leverage ratio from 2.0x to 2.75x and a change of the total leverage ratio from 4.5x to 5.0x.
"The increase to our credit facility provides additional financial flexibility to support our vibrant acquisition pipeline and to continue to develop and meet capital expenditure requirements for existing and open-point facilities. We are very appreciative of the efforts of our syndicate partners at Royal Bank of Canada, HSBC, and Alberta Treasury Branches in working with us on these amendments, and on our growing partnership with them," commented Thomas Orysiuk, President and CEO of AutoCanada.
About AutoCanada Inc.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 52 franchised dealerships, comprised of 60 franchises, in eight provinces and has over 3,750 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, BMW and MINI branded vehicles. In 2014, our dealerships sold approximately 57,000 vehicles and processed approximately 786,000 service and collision repair orders in our 822 service bays during that time.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. All statements other than statements of historical fact contained in this press release may be forward-looking statements and forward-looking information. In particular, forward-looking information and statements in this press release include, but are not limited to, the continued availability of Canadian automotive dealerships in the automotive retail market. These forward-looking statements and information are based on certain key expectations and assumptions made by AutoCanada. Although AutoCanada believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as AutoCanada cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risk that acquisitions will not be completed as proposed or at all and general economic, market and business conditions. Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect AutoCanada's operations and financial results are included in AutoCanada's annual information form and the other disclosure documents filed by AutoCanada with securities regulatory authorities which may be accessed through the SEDAR website at www.sedar.com. The forward-looking statements and information contained in this press release are made as of the date hereof and AutoCanada does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE AutoCanada Inc.
For further information: Christopher Burrows, Vice-President & Chief Financial Officer, Phone: 780.509.2808, Email: [email protected]