AutoCanada has secured an amended credit agreement worth approximately $1.4 billion through a Canadian lender syndicate, strengthening the firm’s balance sheet and extending the maturity of its senior credit facilities to November 22, 2028.

The agreement, now in effect, replaces the Edmonton-based company’s previous facility and introduces a simplified capital structure, including a reduced revolving floorplan financing capacity of $1 billion from about $1.2 billion, the removal of borrowing base and goodwill-based revolving credit components, and revised pricing and covenant terms, said AutoCanada.

“Entering into this amended credit agreement strengthens our balance sheet and aligns our capital structure with our strategic priorities,” said Samuel Cochrane, AutoCanada’s CEO and interim CFO. “The increased flexibility and simplified structure enhance our ability to restore dealership performance and allocate capital to higher-return opportunities, including the growth of our collision platform.”

The updated facility is expected to support general corporate purposes such as working capital, capital expenditures, acquisitions and refinancing existing debt, while enhancing financial flexibility and liquidity. The company said the revised structure supports its 2026 operating priorities, including portfolio optimization and the rationalization of non-core assets.

Key covenant changes include an increase in the total net funded debt to bank EBITDA ratio to 5x from 4x, and the senior net funded debt to bank EBITDA ratio to 3.5x from 2.5x, while the fixed-charge coverage ratio remains unchanged at 1.2x. Based on year-end 2025 figures, the company would have reported improved ratios under the new agreement.

The credit facility was led by the Bank of Nova Scotia as administrative agent, lead arranger and bookrunner, alongside a syndicate including Canadian Imperial Bank of Commerce, Royal Bank of Canada, Bank of Montreal, Toronto-Dominion Bank and ATB Financial.

AutoCanada operates 64 franchised dealerships across Canada representing 23 automotive brands in eight provinces, with approximately 71,000 new and used retail vehicles sold in 2025. Its Canadian operations also include 33 collision centres supported by 26 OEM certifications spanning 37 vehicle brands. The company is in the process of exiting its U.S. operations, which currently consist of 10 franchised dealerships in Illinois that sold about 8,000 vehicles in 2025.

Pictured: AutoCanada’s Modern Auto Body in Edmonton.

Photo: Modern Auto Body