AutoCanada Income Fund Announces the approval of wholesale floor plan credit lines with General Motors Acceptance Corporation of Canada, and the continuation of its Special Committee

    EDMONTON, June 16 /CNW/ - AutoCanada Income Fund ("AutoCanada")
(TSX:ACQ.UN) announced today that it has signed agreements with each of
General Motors Acceptance Corporation of Canada ("GMAC") and Chrysler
Financial Canada ("CFC") whereby GMAC shall provide AutoCanada with wholesale
floor plan funding for each of its owned dealerships. The GMAC wholesale floor
plan shall be used to refinance all floor plan credit previously provided by
CFC, as well as future purchases of new and used vehicles. The GMAC wholesale
floor plan will bear interest at the greater of the RBC Prime business lending
rate or 4.00%, plus 1.00% per annum. In addition, the credit agreement between
AutoCanada and CFC has been further amended to terminate any further floor
plan financing obligation by CFC, and to provide that the $21.6 million
non-revolving fixed term loan shall have a five year term, bearing a fixed
interest rate of 11.36% for the first three years, from the previously
announced seven year term, bearing interest at 8.50% for the first year,
subject to an annual adjustment at the discretion of the lender.
    Pat Priestner, Chairman and CEO of AutoCanada Income Fund stated: "The
Fund is pleased to have signed agreements with each of GMAC and CFC which will
allow us to continue to finance new and used vehicles for all of our brands,
funding which is critical to our continued operations, and we are very
appreciative of the many efforts of both GMAC and CFC to make this a reality.
We are excited to begin a long term relationship with one of North America's
most established automotive financiers, and we look forward to a mutually
rewarding relationship with our new partner, GMAC, a partnership which
provides a solid foundation for our continued success."
    In addition, the Fund announced that the previously announced Special
Committee shall continue with a mandate to review possible term capital
alternatives. "We are very pleased with the arrangements put in place with
GMAC," stated Gordon Barefoot, Chair of the Special Committee. "The Special
Committee, however, shall continue that part of its review that relates to
long term capital alternatives with the intent of maximizing Unit holder

    About AutoCanada
    AutoCanada is Canada's only publicly traded entity with interests
exclusively in the operation of franchised automobile dealerships. Through its
53% interest in AutoCanada LP, it presently owns or manages 22 franchised
automobile dealerships in six provinces and has over 1,100 employees. Through
its owned and managed dealerships, it currently sells Chrysler, Dodge,
Jeep(R), Infiniti, Nissan, Hyundai, Subaru, Volkswagen and Mitsubishi branded
vehicles. In 2008, its owned and managed dealerships sold approximately 23,700
vehicles, processed approximately 277,300 service and collision repair orders
in 284 service bays, and generated revenue of approximately $827 million.
    Additional information about AutoCanada Income Fund is available at and the Fund's website at

For further information:

For further information: Tom Orysiuk, CA, Executive Vice-President and
Chief Financial Officer, Phone: (780) 732-3139, Email:

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