AutoCanada Adjusts Credit Terms Amidst CDK Outage

AutoCanada (TSE:ACQ) has released an update.

AutoCanada Inc., a major North American automobile dealership group, has amended its credit facility terms with lenders to allow an increased Total Net Funded Debt to EBITDA ratio for a short period due to the potential financial impact of an ongoing CDK outage. The temporary adjustment raises the permitted ratio from 4.00:1.00 to 4.50:1.00 until the end of September 2024, after which it will revert to the original ratio. This strategic move is intended to provide financial flexibility in the face of unforeseen impacts from the outage.

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