EDMONTON, June 25, 2013 /CNW/ - AutoCanada Inc. ("AutoCanada" or "the Company") (TSX:ACQ) announced today that it has signed a commitment letter for new and amended credit facilities ("the Facilities") with HSBC Bank Canada ("HSBC"). The Facilities provide AutoCanada with an increase in available capital of $25 million for total availability of $70 million with HSBC which may be utilized for future dealership acquisitions. The Facilities contain the following highlights:
- The existing Revolving Term Loan ("the Revolver") increased to $45 million from $40 million with an option to increase the Revolver to $50 million subject to credit approval of HSBC.
- A new Acquisition Facility ("the Acquisition Line") in the amount of $20 million to provide assistance for acquisitions of future dealerships.
- The existing Evergreen Lease Line ("the Capital Lease Line") in the amount of $5 million remains unchanged.
- A new set of covenants to provide the Company with increased financial flexibility in the future including: funded debt to EBITDA, adjusted debt to EBITDAR, debt service coverage ratio, and minimum tangible net worth covenants.
The maturity date for the Facilities is June 30, 2015 and may be extended annually for an additional 365 days at the request of the Company and upon approval by HSBC. Interest on the Revolver remains unchanged at HSBC Prime Rate plus 0.75% per annum (3.75%) or Bankers Acceptance plus 2.25% per annum (3.45%). Interest on the Acquisition Line is HSBC Prime Rate plus 2.00% per annum (5.00%) or Bankers Acceptance plus 3.25% per annum (4.45%).
Pat Priestner, CEO of AutoCanada Inc. stated, "We are very pleased to have renewed and increased our credit facilities with HSBC Bank Canada. The new covenants and additional debt capacity have been designed to further enhance the Company's ability to pursue growth opportunities over the coming years. We are appreciative of HSBC's continued commitment to our business, and we very much look forward to our continued relationship with this great institution and partner."
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 30 franchised dealerships in six provinces and has over 1,200 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.
Forward Looking Statements
Certain statements contained in this press release are forward-looking statements and information (collectively "forward-looking statements"), within the meaning of the applicable Canadian securities legislation. We hereby provide cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "projection", "vision", "goals", "objective", "target", "schedules", "outlook", "anticipate", "expect", "estimate", "could", "should", "expect", "plan", "seek", "may", "intend", "likely", "will", "believe" and similar expressions are not historical facts and are forward-looking and may involve estimates and assumptions and are subject to risks, uncertainties and other factors some of which are beyond our control and difficult to predict. Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Therefore, any such forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this document.
The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference.
Further, any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
SOURCE: AutoCanada Inc.
For further information:
Jeff Christie, CA
Phone: (780) 732-7164
Email: [email protected]