AutoCanada Inc. has announced an increase to its existing Syndicated Floorplan Facility with Scotiabank and the Canadian Imperial Bank of Commerce (CIBC) by $200 million. The result brings total availability to $550 million. AutoCanada also said that all significant terms and conditions of the previous facility remain unchanged.
Additionally, AutoCanada has also announced that Chrysler Canada has reduced the minimum equity interest it requires for CanadaOne Auto Group Ltd. (CAG — a holding company in AutoCanada controlled by Pat Priestner) — to a five per cent equity interest.
Previously, CAG was required to maintain a minimum 20 per cent equity interest until January 1, 2015, at which time the minimum ownership requirement would expire.
“Earlier this year, AutoCanada announced its intention to acquire an increased number of dealerships over the next two years. 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.” stated Pat Priestner, Chairman and CEO 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 to provide this additional flexibility and capacity regarding our financing alternatives during the remaining months of 2014. This will enable us to take advantage of the continued strength of our deal pipeline.”
