AutoCanada Inc. Announces New and Amended Credit Facilities with HSBC Bank
EDMONTON, June 25, 2013 /CNW/ - AutoCanada Inc. ("AutoCanada" or "the
Company") (TSX:ACQ) announced today that it has signed a commitment letter for
new and amended credit facilities ("the Facilities") with HSBC Bank Canada
("HSBC"). The Facilities provide AutoCanada with an increase in available
capital of $25 million for total availability of $70 million with HSBC which
may be utilized for future dealership acquisitions. The Facilities contain
the following highlights:
-- The existing Revolving Term Loan ("the Revolver") increased to
$45 million from $40 million with an option to increase the
Revolver to $50 million subject to credit approval of HSBC.
-- A new Acquisition Facility ("the Acquisition Line") in the
amount of $20 million to provide assistance for acquisitions of
-- The existing Evergreen Lease Line ("the Capital Lease Line") in
the amount of $5 million remains unchanged.
-- A new set of covenants to provide the Company with increased
financial flexibility in the future including: funded debt to
EBITDA, adjusted debt to EBITDAR, debt service coverage ratio,
and minimum tangible net worth covenants.
The maturity date for the Facilities is June 30, 2015 and may be extended
annually for an additional 365 days at the request of the Company and upon
approval by HSBC. Interest on the Revolver remains unchanged at HSBC Prime
Rate plus 0.75% per annum (3.75%) or Bankers Acceptance plus 2.25% per annum
(3.45%). Interest on the Acquisition Line is HSBC Prime Rate plus 2.00% per
annum (5.00%) or Bankers Acceptance plus 3.25% per annum (4.45%).
Pat Priestner, CEO of AutoCanada Inc. stated, "We are very pleased to have
renewed and increased our credit facilities with HSBC Bank Canada. The new
covenants and additional debt capacity have been designed to further enhance
the Company's ability to pursue growth opportunities over the coming years.
We are appreciative of HSBC's continued commitment to our business, and we
very much look forward to our continued relationship with this great
institution and partner."
AutoCanada is one of Canada's largest multi-location automobile dealership
groups, currently operating 30 franchised dealerships in six provinces and has
over 1,200 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram,
FIAT, Chevrolet, GMC, Buick, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi,
Audi, and Volkswagen branded vehicles. In 2012, our dealerships sold
approximately 30,000 vehicles and processed approximately 309,000service and
collision repair orders in our 333 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.
Forward Looking Statements
Certain statements contained in this press release are forward-looking
statements and information (collectively "forward-looking statements"), within
the meaning of the applicable Canadian securities legislation. We hereby
provide cautionary statements identifying important factors that could cause
our actual results to differ materially from those projected in these
forward-looking statements. Any statements that express, or involve
discussions as to, expectations, beliefs, plans, objectives, assumptions or
future events or performance (often, but not always, through the use of words
or phrases such as "will likely result", "are expected to", "will continue",
"is anticipated", "projection", "vision", "goals", "objective", "target",
"schedules", "outlook", "anticipate", "expect", "estimate", "could", "should",
"expect", "plan", "seek", "may", "intend", "likely", "will", "believe" and
similar expressions are not historical facts and are forward-looking and may
involve estimates and assumptions and are subject to risks, uncertainties and
other factors some of which are beyond our control and difficult to predict.
Accordingly, these factors could cause actual results or outcomes to differ
materially from those expressed in the forward-looking statements.
Therefore, any such forward-looking statements are qualified in their entirety
by reference to the factors discussed throughout this document.
The Company's Annual Information Form and other documents filed with
securities regulatory authorities (accessible through the SEDAR website
www.sedar.com describe the risks, material assumptions and other factors that
could influence actual results and which are incorporated herein by reference.
Further, any forward-looking statement speaks only as of the date on which
such statement is made, and, except as required by applicable law, we
undertake no obligation to update any forward-looking statement to reflect
events or circumstances after the date on which such statement is made or to
reflect the occurrence of unanticipated events. New factors emerge from time
to time, and it is not possible for management to predict all of such factors
and to assess in advance the impact of each such factor on our business or the
extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking
Jeff Christie, CA Vice-President, Finance Phone: (780) 732-7164
SOURCE: AutoCanada Inc.
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CO: AutoCanada Inc.
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-0- Jun/25/2013 23:00 GMT
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