Edmonton based dealer group AutoCanada Inc. recently announced today that it has signed a renewal of its credit facility with HSBC Bank Canada. Besides renewal, this new deal also results in a boost in the amount of credit available through the Revolving Term Loan from $30 million to $40 million, with an option to further increase the amount to $50 million, subject to credit approval from HSBC. In addition to the Revolver, the credit facility has also made a $5 million revolving lease line available to AutoCanada Inc., which may be used to finance capital expenditures associated with dealership acquisitions, relocations and open points. Under the current terms of the credit agreement, the credit facility requires repayment by June 30, 2014, though the deadline may be extended for an additional 365 days at the request of AutoCanada Inc. and upon approval by HSBC. Interest on the facility remains unchanged at HSBC Prime Rate plus 0.75 per cent per annum.
Upon news of the announcement, AutoCanada Inc.’s CEO, Pat Priestner said, “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.”
