AutoCanada Sees Boost in HSBC Canada Credit Facility
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EDMONTON, Alberta — AutoCanada's existing credit facility with HSBC Bank Canada has been beefed up and the interest rate on the facility has been cut, the company announced this week.
The revolving term loan facility now has availability of $30 million, up from $20 million previously. The interest rate on the facility is now HSBC Prime Rate plus 1.25 percent. Before it was HSBC Prime Rate plus 1.65 percent.
Other than that particular item, repayment terms and security stay the same.
"We are very pleased to have negotiated both an increase to the amount available under our credit facility as well as a reduction in the interest rate with one of our two primary lenders," noted Pat Priestner, AutoCanada's chief executive officer.
"Both of these changes to our credit facility demonstrate increased confidence in our business by HSBC and our mutual desire to continue our long term relationship," he added.
