EDMONTON, March 16, 2017 /CNW/ - AutoCanada Inc. ("AutoCanada") (TSX: ACQ) announced today that it has executed an agreement with its syndicated lending partners to amend and restate its $250 million revolving credit facility while extending the maturity date of the agreement by two years to May 2020.
Although there were no changes to the composition of lenders included in the syndicate, HSBC and RBC will co-lead the agreement while HSBC will retain its position as sole book-runner and agent. Under the terms of the new agreement, there are no changes to the $250 million borrowing limit or debt covenants although modifications have been made to the facility pricing grid which the Company anticipates will allow for more effective management of financing charges.
"Despite the sustained economic challenges of the past two years, this new agreement highlights the unwavering confidence our lending partners, HSBC, RBC and ATB, have in AutoCanada and their continued support for the growth and success of our Company," said Chris Burrows, Chief Financial Officer. "We believe that this agreement will allow us to continue to pursue and implement our strategic vision and underlines the strength of our relationships with our valued financing partners."
About AutoCanada Inc.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 56 franchised dealerships, comprised of 64 franchises, in eight provinces and has over 4,250 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 2016, our dealerships sold approximately 60,000 vehicles and processed approximately 864,000 service and collision repair orders in our 928 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 receipt of requisite approvals for the acquisition and the projected strength of the Ontario automotive retail market. These forward-looking statements and information are based on certain key expectations and assumptions made by AutoCanada, including the assumption that all necessary approvals will be obtained. 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 all requisite approvals will not be obtained for the acquisition and the acquisition will not be completed as proposed or at all and general economic, market and business conditions in Ontario. 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, financial results and the completion of the proposed acquisition 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: Glen Nelson, Investor Relations, Phone: 780.732.3135, Email: [email protected]