EDMONTON, Alberta -

AutoCanada recently signed a renewal of its credit facility with HSBC Bank Canada whereby HSBC increased the availability of the existing revolving term loan from $30 million to $40 million.

Officials highlighted the deal also includes an option to increase the revolver to $50 million based on credit approval of HSBC.

In addition to the revolver, AutoCanada explained the facility makes available to the company a $5 million revolving lease line that may be used to finance capital expenditures associated with dealership acquisitions, relocations and open points.

Management indicated the facility is repayable on June 30, 2014 and may be extended for an additional 365 days at the request of the company and upon approval by HSBC.

Officials noted interest on the facility remains unchanged at HSBC prime rate plus 0.75 percent per annum.

“We are very pleased to have renewed our credit facility with HSBC Bank Canada,” AutoCanada chief executive officer Pat Priestner stated

“The increase in our revolver to $40 million with an option to increase to $50 million will allow us greater flexibility in meeting our capital needs thereby providing greater value for our shareholders,” Priestner continued.

“We are appreciative of HSBC's continued commitment to our business, and very much look forward to our continued partnership with this great institution,” he went on to say.

AutoCanada is coming off its most profitable quarter ever as its second-quarter used retail sales climbed by more than 13 percent year-over-year.

AutoCanada previously reported that pre-tax net earnings for the second quarter came in at $8.9 million, up 11.3 percent year-over-year, while EBITDA climbed 9.7 percent to $10.2 million.

Net earnings were at $6.7 million, an increase of 11.7 percent. Revenues totaled $294.8 million, a 1.4-percent hike.