AUTOCANADA COMPLETES SALE OF KIA OF LINCOLNWOOD AND ADVANCES U.S. EXIT STRATEGY

Executive Summary

• AutoCanada completed the sale of Kia of Lincolnwood for approximately C$13.4 million in cash.
• Proceeds will be used to reduce the outstanding balance on the company’s revolving credit facility, enhancing liquidity.
• The transaction advances AutoCanada’s previously announced plan to exit its U.S. Operations segment and supports a covenant amendment that raises the Total Funded Debt‑to‑Bank EBITDA limit to 4.5× through June 30 2026.

Key Details

• Sale Price: C$13.4 million total cash consideration.
• C$7.1 million allocated to goodwill and fixed assets (excluding inventory and net working capital).
• C$6.3 million allocated to real estate.
• Historical Performance of Kia of Lincolnwood (12‑months ended Dec 31 2025):
• Sales: ≈ C$53.0 million (down from C$58.0 million in 2024).
• Net loss: C$1.6 million (improved from a C$2.0 million loss in 2024).
• Use of Proceeds: Entire amount directed to repayment of the revolving credit facility, reducing leverage.
• U.S. Divestiture Progress:
• Total gross proceeds net of working‑capital adjustments from U.S. asset sales to date: ≈ C$62.4 million.
• Company still expects total gross proceeds at the high end of its previously communicated range of C$115 million–C$130 million.
• Covenant Amendment: Lending syndicate consented to increase the Total Funded Debt‑to‑Bank EBITDA covenant from 4.0× to 4.5×, effective through June 30 2026, providing additional financial flexibility for ongoing divestitures.
• Strategic Impact: The disposition represents continued execution of AutoCanada’s exit strategy from its U.S. Operations segment, aiming to strengthen the balance sheet and improve liquidity ratios.

Notable Quotes

(No direct quotes were provided in the release.)