AutoNation extends maturity of facility, cuts term loan, revolver size

By Jennifer Chiou

New York, April 14 - AutoNation, Inc. announced that it entered into an amendment to the credit agreement governing its term loan and revolving credit facilities, extending the maturity date for $479.4 million of term loan borrowings and $581.6 million of revolving credit commitments.

The extended debt will now mature two years later on July 18, 2014.

Meanwhile, the maturity date for $54 million of term loan borrowings and $57 million of revolving credit commitments remains on July 18, 2012.

Also, the size of the term loan facility was reduced to $533.4 million from $600 million, and the size of the revolving credit facility was reduced to $638.6 million from $700 million.

The company noted that the amendment also modified certain financial covenants, including an increase in the maximum leverage ratio to 3.25x from 2.75x and a decrease in the maximum capitalization ratio to 60% from 65%.

In calculating the capitalization ratio, AutoNation is now permitted to exclude goodwill, franchise rights and long-lived asset impairments subsequent to 2007, according to a news release.

AutoNation is an automotive retailer based in Fort Lauderdale, Fla.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.