FORT LAUDERDALE, Fla. (AP) — AutoNation Inc. said late Wednesday that it entered a new unsecured credit agreement that includes a $500 million term loan facility and a $1.2 billion revolving credit facility.
The Fort Lauderdale, Fla.-based car and truck retailer said the agreement allows the company, subject to credit availability, to increase the amount of the term loan and revolving credit facilities by up to $500 million. The agreement will terminate on Dec. 7, 2016.
The new financing replaces AutoNation's existing term loan and revolving credit facility, which are due in 2012 and 2014.
AutoNation said the new credit agreement increases both its maximum leverage ratio and maximum capitalization ratio, while also lowering borrowing costs.
In afternoon trading, AutoNation shares fell 57 cents to $35.68.