Franchise Services of North America Inc. Announces that on June 7th the Company
Closed on a Revolving Credit Facility with Bank of
CALGARY, ALBERTA -- (Marketwired) -- 06/17/13 -- FRANCHISE SERVICES
OF NORTH AMERICA INC. ("FSNA" or the "Company") (TSX VENTURE:FSN) is
pleased to announce that on June 7th the Company closed on a $7.5
million revolving credit facility with Bank of America. The facility
was put in place to support further the recently acquired Advantage
Rent A Car brand in its strategic and operational efforts since its
divestiture from the Hertz Corporation in December 2012. The facility
bears interest at Libor + 350 bps, and is supported by the Company's
major shareholder, Macquarie Capital. The facility also replaces the
subordinated debt facility made available previously by Macquarie
FSNA's previously announced acquisition of the Advantage brand by way
of merger (the "Merger") between a wholly-owned subsidiary of FSNA
and Adreca Holdings Corp. ("Adreca"), a subsidiary of Macquarie
Capital, was completed in May 2013.
FSNA is a publicly traded company listed on the TSX Venture Exchange.
The Company and its subsidiaries own the following brands: Advantage
Rent A Car ("Advantage"), U-Save Car & Truck Rental, U-Save Car
Sales, Rent-A-Wreck of Canada, Practicar, Auto Rental Resource Center
("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
Advantage is currently positioned as a brand, and targets consumers,
in the value-oriented segment of the U.S. rental car market. As of
July 2013, Advantage is expected to operate from approximately 75
locations servicing airports and five additional satellite locations
in hotels in Hawaii and Las Vegas and has a fleet of approximately
23,000 cars, ranging from economy cars to SUVs. Advantage primarily
services the leisure segment of the rental car market and
predominantly operates in key domestic leisure destinations,
including California, Florida, Texas, Colorado, Hawaii and Arizona.
U-Save, together with its subsidiary ARRC, has over 1,100 locations
throughout the United States and is one of North America's largest
franchise car rental companies. Having primarily serviced the local
market for the past 30 years, the Company is expanding into the
airport market with plans for the opening of airport locations in the
top 30 markets in the United States and the major airports in Canada.
U-Save currently services 31 airport markets in 12 different states
and 7 countries. U-Save Car Sales is an expansion of the U-Save brand
into the car sales market, and provides goods and services to car
sales operators looking to affiliate with a national brand.
Practicar Systems Inc. (a wholly owned subsidiary of FSNA) owns the
rights to the Rent-A-Wreck(R) and the PractiCar(R) trademarks for all
of Canada. The Rent-A-Wreck(R) system operates a network of 57
franchises from coast-to-coast in Canada, providing a range of
vehicle rental, leasing and sales options to its customers. The
Rent-A-Wreck(R) system has been in continuous operation in Canada
Certain statements made in this news release are forward looking in
nature, including statements made with respect to Advantage. The
words "may," "could," "should," "would," "expect," "intend,"
"estimate," "anticipate," "believe," or "outlook" and similar
expressions often identify forward-looking information. By their
nature, forward-looking statements require FSNA to make assumptions
and are subject to inherent risks and uncertainties. The
forward-looking statements contained in this news release are based
on certain key expectations and assumptions made by FSNA. Although
FSNA believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because FSNA
can give no assurance that they will prove to be correct. FSNA's
forward-looking statements are qualified in their entirety by these
cautionary statements. In addition, the forward-looking statements
are made only as of the date of this news release, and except as
required by applicable law, FSNA undertakes no obligation to publicly
update these forward-looking statements to reflect new information,
subsequent events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Franchise Services of North America Inc.
Thomas P. McDonnell, III
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