AUTOCANADA ANNOUNCES AMENDED AND RESTATED CREDIT AGREEMENT

• AutoCanada Inc. announced an amended and restated credit agreement on April 22, 2026.
• Total committed facilities increased to approximately $1.38 billion CAD.
• Maturity of senior credit facilities extended from April 22, 2027 to November 22, 2028.
• Revolving floorplan capacity reduced from $1.22 billion to $1.0 billion.
• Capital structure simplified by eliminating borrowing base and goodwill-linked revolving credit structures.
• Financial covenant thresholds increased: Total Net Funded Debt to Bank EBITDA Ratio raised to 5.00x (from 4.00x).
• Senior Net Funded Debt to Bank EBITDA Ratio raised to 3.50x (from 2.50x).
• Fixed Charge Coverage Ratio remains at 1.20x.
• Proceeds designated for general corporate purposes, working capital, capex, acquisitions, and refinancing existing indebtedness.
• Lender syndicate led by The Bank of Nova Scotia with major Canadian banks participating.

• Liquidity Stability: The extension provides critical runway through late 2028, reducing immediate default risk given the company's recent earnings losses.
• Covenant Flexibility: Increasing debt-to-EBITDA limits to 5.00x acknowledges current EBITDA compression (Q4 2025 Adjusted EBITDA down 39.9%) and allows for continued deleveraging without breach.
• Capital Structure Simplification: Removing goodwill-linked revolving credit reduces complexity but also removes a potential source of liquidity tied to asset value, relying more on cash flow.
• Operational Context: This financing supports the ongoing U.S. exit strategy ($65.8M proceeds realized to date) and collision platform growth initiatives.
• Market Expectation: Given the Q4 2025 earnings miss and prior covenant amendments in March 2026, this restructuring was anticipated by the market as a necessary step to maintain solvency during transformation.
• Risk Mitigation vs. Growth: While positive for survival, it does not signal revenue growth or margin expansion; it is defensive capital management rather than offensive investment.

• Company: AutoCanada Inc., a Canadian automotive retailer operating franchised dealerships and collision repair centers.
• Flagship Project: Strategic transformation focused on exiting U.S. operations and expanding the domestic collision repair network (ACX).
• Development Status: U.S. exit strategy is 50%+ complete ($65.8M of $130M target realized). Collision footprint expanded with acquisitions in Edmonton (Doug's Place Strathcona, Modern Autobody).
• Operational Focus: Cost transformation program targeting $115M annualized run-rate savings by end of 2025.
• Market Position: One of Canada's largest automotive retailers with a focus on integrated service and collision repair to capture aftermarket revenue.