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
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.
Additional information about AutoCanada Inc. is available at www.sedar.com and the Company's website at www.autocan.ca.
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
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
SOURCE: AutoCanada Inc.
For further information:
Jeff Christie, CA
Phone: (780) 732-7164