AutoCanada Inc. is gearing up for heightened short-term capital spending by adding $25 million to its existing credit facility.
The Edmonton-based dealership group said April 23 that access to the added funds will support “anticipated capital expenditures over the coming quarters.” It did not specify what capital spending is planned, though such expenditures typically include internal investments in buildings and equipment or external acquisitions.
AutoCanada’s aggregate bank facilities total $1.635 billion following the change, up from $1.61 billion previously. Roughly 75 per cent of that total is dedicated to floorplan financing, according to the company’s latest annual report.
The dealership group said the latest amendments to its credit facility also include “enhancements to used vehicle flooring criteria” and extends the credit facility’s maturity date to April 2027.
The company that owns 66 franchised stores in Canada and another 18 in the United States last amended the facility in February 2023.
AutoCanada plans to report its financial results for the first quarter of 2024 on May 2.
