AutoCanada Inc. announced it entered into a new credit agreement providing secured credit facilities up to $1.08 billion, subject to certain conditions precedent to funding.

Upon closing, the new three-year credit agreement will increase the Company's borrowing capacity and provide $660 million for floorplan and lease financing, $350 million for acquisitions and capital expenditures as well as $70 million for general corporate purposes.

The new facility, led by Scotiabank and involving all prior syndicate participants, including CIBC, RBC, HSBC and ATB, replaces AutoCanada's existing $550 million syndicated floorplan facility and $250 million syndicated revolving credit agreement.The key financial covenants associated with the new facility are similar to the existing facilities that are being replaced.