AutoCanada Inc. Announces Increase in Floorplan Credit Facility to $550 Million and Change to Chrysler Canada Minimum Ownership Requirement for CanadaOne Auto Group
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."
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.