EDMONTON,
April 24, 2014 /PRNewswire/ -
AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ)
announced today that it has increased its existing syndicated
floorplan facility ("Floorplan Facility") with The Bank of
Nova Scotia ("Scotiabank") and The
Canadian Imperial Bank of Commerce ("CIBC") by $200 million, bringing total availability to
$550 million. All significant
terms and conditions of the previous facility remain unchanged.
AutoCanada also announced today that Chrysler Canada has reduced
the minimum equity interest that it requires CanadaOne Auto Group
Ltd. ("CAG"), a company controlled by Mr. Pat Priestner, to hold in AutoCanada until
January 1, 2015, to a 5% equity
interest. Previously CAG was required to maintain a minimum 20%
equity interest until January 1,
2015, at which time the minimum ownership requirement would
expire.
"Earlier this year, the Company announced its
intention to acquire an increased number of dealerships over the
next two years. Recognizing the increased need for inventory
financing associated with a higher rate of growth, Scotiabank, as
lead syndicate partner and agent, approved a $200 million increase to the Floorplan Facility
to a total of $550 million in
availability. We are extremely pleased to be partnered with
Scotiabank and CIBC and would like to give recognition to these two
financial institutions for their continued support of our growth
strategy and the inherent confidence they have in the future of
AutoCanada." stated Pat Priestner,
Chairman and CEO of AutoCanada. Mr. Pat Priestner further noted that, "Although the
minimum equity interest requirement would have expired at year-end
in any event, the Company appreciates Chrysler Canada accommodating
us in providing this additional flexibility and capacity regarding
our financing alternatives during the remaining months of 2014,
enabling us to take advantage of continued strength of our deal
pipeline."
About AutoCanada
AutoCanada is one of Canada's largest multi-location automobile
dealership groups, currently operating 34 franchised dealerships in
seven provinces and has over 1,600 employees. AutoCanada currently
sells Chrysler, Dodge, Jeep, Ram, Fiat, Chevrolet, GMC,
Buick, Cadillac, Infiniti, Nissan,
Hyundai, Subaru, Mitsubishi, Audi, and Volkswagen branded vehicles.
In 2013, our dealerships sold approximately 36,000 vehicles and
processed approximately 364,000 service and collision repair orders
in our 381 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.
SOURCE AutoCanada Inc.