EDMONTON, March 16, 2017 /CNW/ - AutoCanada Inc.
("AutoCanada") (TSX: ACQ) announced today that it has executed an
agreement with its syndicated lending partners to amend and restate
its $250 million revolving credit
facility while extending the maturity date of the agreement by two
years to May 2020.
Although there were no changes to the composition of lenders
included in the syndicate, HSBC and RBC will co-lead the agreement
while HSBC will retain its position as sole book-runner and agent.
Under the terms of the new agreement, there are no changes to the
$250 million borrowing limit or debt
covenants although modifications have been made to the facility
pricing grid which the Company anticipates will allow for more
effective management of financing charges.
"Despite the sustained economic challenges of the past two
years, this new agreement highlights the unwavering confidence our
lending partners, HSBC, RBC and ATB, have in AutoCanada and their
continued support for the growth and success of our Company," said
Chris Burrows, Chief Financial
Officer. "We believe that this agreement will allow us to
continue to pursue and implement our strategic vision and
underlines the strength of our relationships with our valued
financing partners."
About AutoCanada Inc.
AutoCanada is one of Canada's
largest multi-location automobile dealership groups, currently
operating 56 franchised dealerships, comprised of 64 franchises, in
eight provinces and has over 4,250 employees. AutoCanada currently
sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC,
Buick, Cadillac, Infiniti, Nissan,
Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, KIA, BMW and MINI
branded vehicles. In 2016, our dealerships sold approximately
60,000 vehicles and processed approximately 864,000 service and
collision repair orders in our 928 service bays during that
time.
Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. All statements other than statements of historical
fact contained in this press release may be forward-looking
statements and forward-looking information. In particular,
forward-looking information and statements in this press release
include, but are not limited to, the receipt of requisite approvals
for the acquisition and the projected strength of the Ontario automotive retail market. These
forward-looking statements and information are based on certain key
expectations and assumptions made by AutoCanada, including the
assumption that all necessary approvals will be obtained. Although
AutoCanada believes that the expectations and assumptions on which
such forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward-looking statements and information as AutoCanada cannot
give any assurance that they will prove to be correct. Since
forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, the risk that all requisite
approvals will not be obtained for the acquisition and the
acquisition will not be completed as proposed or at all and general
economic, market and business conditions in Ontario. Readers are cautioned that the
foregoing list of risks and uncertainties is not exhaustive.
Additional information on these and other risk factors that could
affect AutoCanada's operations, financial results and the
completion of the proposed acquisition are included in AutoCanada's
annual information form and the other disclosure documents filed by
AutoCanada with securities regulatory authorities which may be
accessed through the SEDAR website at www.sedar.com. The
forward-looking statements and information contained in this press
release are made as of the date hereof and AutoCanada does not
undertake any obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Additional information about AutoCanada Inc. is available at
www.sedar.com and the Company's website at www.autocan.ca.
SOURCE AutoCanada Inc.