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AutoCanada Announces New Expanded Credit Facility
AutoCanada Announces New Expanded Credit Facility Canada NewsWire EDMONTON, Marc...
About this update from Autocanada Inc.
[{"type":"text","content":"\n\n\n\nAutoCanada Announces New Expanded Credit Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nEDMONTON, March 20, 2018\n\n\n\nEDMONTON, March 20, 2018 /CNW/ - AutoCanada Inc. (the \"Company\") (TSX:ACQ) today announced an important milestone in its growth plan as it entered into a new credit agreement providing secured credit facilities up to $1.08 billion, subject to certain conditions precedent to funding. \n\n\n \n \n\n \nUpon closing, the new three-year credit agreement will increase the Company's borrowing capacity and provide $660 million for floorplan and lease financing, $350 million for acquisitions and capital expenditures as well as $70 million for general corporate purposes.\n\nThe new facility, led by Scotiabank and involving all prior syndicate participants, including CIBC, RBC, HSBC and ATB, replaces AutoCanada's existing $550 million syndicated floorplan facility and $250 million syndicated revolving credit agreement. The key financial covenants associated with the new facility are similar to the existing facilities that are being replaced. \n\n\"This new credit facility will provide AutoCanada with the flexibility to continue to grow and acquire dealerships, finance our business and maintain a prudent approach to leverage. We thank all of our lending partners for their support in completing the syndication and their continued vote of confidence in our success,\" said Chris Burrows, Senior Vice-President and Chief Financial Officer. \n\nAbout AutoCanada\n\nAutoCanada is Canada's largest multi-location automobile dealership group by volume, currently operating 54 franchised dealerships, comprised of 62 franchises, in eight provinces and has over 3,500 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, Smart, BMW and MINI branded vehicles. In 2017, our dealerships sold approximately 63,000 vehicles and processed approximately 870,000 service and c...