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 facilities:
- 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.
SOURCE: AutoCanada Inc.
For further information:
Jeff Christie, CA
Phone: (780) 732-7164
Email: [email protected]