EDMONTON, Alberta -

AutoCanada recently entered into a new $240 million revolving floor plan facility agreement with The Bank of Nova Scotia, replacing its existing facility with Ally Credit Canada.

Executives explained that the new revolving floor plan facility will be used to finance the purchase of new- and used-vehicle inventory at 21 of AutoCanada’s dealership locations. They indicated the new credit agreement contains certain terms and conditions that differ from the company’s prior credit agreement, including more favorable interest rates as well as new financial covenants.

Based on the current floating rate and borrowing levels, AutoCanada expects the agreement to produce annual savings in interest costs in excess of $1 million as the current floating rate will be reduced from 4.20 percent to 3.05 percent under the new agreement. 

"Management is very pleased to have entered into the new facility with Scotiabank.  The level of commitment to our business by Scotiabank is representative of their reputation in the industry as a leading provider of automotive finance in Canada,” stated AutoCanada chief executive officer Pat Priestner.

“We would like to thank the management team at Scotiabank Dealer Finance for their hard work in setting up the facility, which we believe will be mutually beneficial over the short term and long term,” Priestner continued.

“We are also very appreciative of the opportunity to have worked with Ally Credit Canada over the past three years and the very good service they had provided to us during that time,” he went on to say.

A copy of the new agreement is available at www.sedar.com, and the company’s website at www.autocan.ca.