Franchise Services of North America Inc. Announces that on June 7th the Company Closed on a Revolving Credit Facility with Bank
Franchise Services of North America Inc. Announces that on June 7th the Company Closed on a Revolving Credit Facility with Bank of America
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 Capital.
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 since 1976.
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.
Contacts: Franchise Services of North America Inc. Thomas P. McDonnell, III (601) 713-4333