FORT LAUDERDALE, Fla. -

AutoNation revealed Thursday that it has started talks with new and existing lenders for a new credit agreement totaling about $1.5 billion.

The proposed five-year deal would include term loan and revolving credit facilities, and it would roughly be $328 million higher than the existing agreement.

Additionally, the agreement would include an accordion feature that would let AutoNation boost the aggregate amount by as much as $500 million (pending credit availability).

The new agreement would terminate in 2016 and would replace the credit agreement AutoNation already has, which includes the term loan facilities due next year and in 2014, as well as the revolving credit facilities due in 2012 and 2014.

“With the new credit agreement, the company expects to increase its maximum leverage ratio covenant to 3.75x and its maximum capitalization ratio to 65 percent,” officials noted. “The company also expects to lower its borrowing costs due to reduced interest rate spreads as compared to the interest rate spreads in its term loan and revolving credit facilities due 2014.”

AutoNation went on to note that it expects to enter the new agreement next month, but emphasized that “there can be no assurance” that 1) it will enter the facility at all or 2) it will enter the deal under the aforementioned terms.

“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,” AutoNation added.