AutoCanada Announces New Expanded Credit Facility

EDMONTON, March 20, 2018 /CNW/ - AutoCanada Inc. (the "Company") (TSX:ACQ) today announced an important milestone in its growth plan as it entered into a new credit agreement providing secured credit facilities up to $1.08 billion, subject to certain conditions precedent to funding. 

Upon closing, the new three-year credit agreement will increase the Company's borrowing capacity and provide $660 million for floorplan and lease financing, $350 million for acquisitions and capital expenditures as well as $70 million for general corporate purposes.

The new facility, led by Scotiabank and involving all prior syndicate participants, including CIBC, RBC, HSBC and ATB, replaces AutoCanada's existing $550 million syndicated floorplan facility and $250 million syndicated revolving credit agreement. The key financial covenants associated with the new facility are similar to the existing facilities that are being replaced.

"This new credit facility will provide AutoCanada with the flexibility to continue to grow and acquire dealerships, finance our business and maintain a prudent approach to leverage. We thank all of our lending partners for their support in completing the syndication and their continued vote of confidence in our success," said Chris Burrows, Senior Vice-President and Chief Financial Officer.

About AutoCanada

AutoCanada is Canada's largest multi-location automobile dealership group by volume, currently operating 54 franchised dealerships, comprised of 62 franchises, in eight provinces and has over 3,500 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, Smart, BMW and MINI branded vehicles. In 2017, our dealerships sold approximately 63,000 vehicles and processed approximately 870,000 service and collision repair orders in our 999 service bays for a total revenue in excess of $3 billion.

Forward Looking Statements

Certain statements contained in this news 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", "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 release.

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 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 statement.

Additional Information

Additional information about AutoCanada is available at the Company's website at www.autocan.ca and www.sedar.com.

SOURCE AutoCanada Inc.