EDMONTON, Sept. 30, 2013 /CNW/ - AutoCanada Inc. ("AutoCanada" or the
"Company") (TSX: ACQ) announced today that it has completed a new $350
million syndicated floorplan credit facility (the "Facility") with The
Bank of Nova Scotia ("BNS") and the Canadian Imperial Bank of Commerce
("CIBC") with BNS serving as administrative agent to the Facility. The
Facility can be expanded to $450 million in total availability upon
credit approval of the syndicate of lenders. The Facility includes a
15 basis point reduction to the interest rate from the Company's
previous facility to a new rate of Bankers' Acceptance plus 1.15%
(currently 2.37%) per annum. The financial covenants and repayment
terms of the Facility remain consistent with the Company's previous
floorplan facility with BNS.
Commenting on the transaction, Patrick Priestner, Chairman and CEO of
AutoCanada, stated, "The Company would like to thank both Scotiabank
and CIBC for their support in completing the syndication. We are
pleased to further grow our excellent partnership with Scotiabank, and
look forward to developing a long-term relationship with our new
financial partner, CIBC. The new facility will provide our Company
with a cost effective means of financing the inventory of our current
and future dealerships and will assist us in executing upon our stated
growth plan."
About AutoCanada
AutoCanada is one of Canada's largest multi-location automobile
dealership groups, currently operating 32 franchised dealerships in six
provinces and has over 1,500 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 309,000 service 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.
SOURCE AutoCanada Inc.
![](http://rt.newswire.ca/rt.gif?NewsItemId=C5950&Transmission_Id=201309301838CANADANWCANADAPR_C5950&DateId=20130930)
Jeff Christie, CA
Vice-President, Finance
Phone: (780) 732-7164
Email: jchristie@autocan.ca
Copyright CNW Group 2013