AutoCanada 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.”
AutoCanada operates 56 franchised dealerships, comprised of 64 franchises, in eight provinces and has more than 4,250 employees.