FORT LAUDERDALE, Fla. — AutoNation announced Wednesday it has entered into a new unsecured credit agreement with a $500 million term loan facility and a $1.2 billion revolving credit facility. 

The company explained the new credit agreement contains an accordion feature that allows it, subject to credit availability, to increase the amount of the term loan and revolving credit facilities by up to $500 million in the aggregate. 

The new credit agreement will terminate on Dec. 7, 2016.

This agreement replaces AutoNation’s existing credit agreement (including the term loan facilities due 2012 and 2014 and the revolving credit facilities due 2012 and 2014), officials noted.

Additionally, with the new agreement, the company increased its maximum leverage ratio from 3.25x to 3.75x, and its maximum capitalization ratio from 60 percent to 65 percent.

The company also lowered its borrowing costs due to reduced interest rate spreads, compared to the interest rate spreads in its term loan and revolving credit facilities due 2014.

“The company continues to monitor current market conditions. If attractive opportunities become available, it may consummate one or more additional financings, including in the near term,” officials concluded.