AutoCanada Renews Credit Facility With HSBC Bank Canada
AutoCanada announced that it has signed a renewal of its credit facility with HSBC Bank Canada whereby HSBC increased the availability of the existing revolving term loan from $30 million to $40 million, with an option to increase the revolver to $50 million subject to credit approval of HSBC.
In addition to the revolver, the facility makes available to the company a $5 million revolving lease line which may be used to finance capital expenditures associated with dealership acquisitions, relocations and open points. The facility is repayable on June 30, 2014 and may be extended for an additional 365 days at the request of the company and upon approval by HSBC. Interest on the facility remains unchanged at HSBC prime rate plus 0.75% per annum.
Pat Priestner, CEO of AutoCanada, stated, “We are very pleased to have renewed our credit facility with HSBC Bank Canada. The increase in our revolver to $40 million with an option to increase to $50 million will allow us greater flexibility in meeting our capital needs thereby providing greater value for our shareholders. We are appreciative of HSBC’s continued commitment to our business, and very much look forward to our continued partnership with this great institution.”
AutoCanada is one of Canada’s largest multi-location automobile dealership groups, currently operating 26 franchised dealerships in six provinces and has over 1,100 employees.