Scotiabank Agents AutoCanada Floorplan Facility Increase
AutoCanada announced it entered into a new flooplan facility totaling $550 million, with Scotiabank as lead syndicate partner and agent. The financing supports the company’s dealership acquisition efforts.
“Earlier this year, the company announced its intention to acquire an increased number of dealerships over the next two years,” stated Pat Priestner, chairman and CEO of AutoCanada. “Recognizing the increased need for inventory financing associated with a higher rate of growth, Scotiabank, as lead syndicate partner and agent, approved a $200 million increase to the floorplan facility to a total of $550 million in availability. We are extremely pleased to be partnered with Scotiabank and CIBC and would like to give recognition to these two financial institutions for their continued support of our growth strategy and the inherent confidence they have in the future of AutoCanada.”
Priestner further noted that, “Although the minimum equity interest requirement would have expired at year-end in any event, the Company appreciates Chrysler Canada accommodating us in providing this additional flexibility and capacity regarding our financing alternatives during the remaining months of 2014, enabling us to take advantage of continued strength of our deal pipeline.”
AutoCanada is one of Canada’s largest multi-location automobile dealership groups.