Automotive Finco Corp. Announces Extension of Maturity Date of $21 Million Loan and Deferral of Annual Cash Dividends

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TORONTO, Nov. 23, 2023 (GLOBE NEWSWIRE) -- Automotive Finco Corp. (NEX: AFCC-H) (the "Company") announces that AA Finance Co LP (the "Borrower") has elected to extend the maturity date of the $21 million loan made between Automotive Finance Limited Partnership and AA Finance Co LP in November 2022 by one year to November 18, 2024, pursuant to the loan agreement. The loan bears interest at the rate of 12% per annum. The Borrower has also elected to pay interest in kind ("PIK Interest") with respect to the quarterly interest payments. All amounts of accrued PIK Interest have been added to the principal amount of the loan at each interest payment date and bear interest until repaid. Accordingly, the Company also announces that there will be no annual dividend in December 2023. The Company intends to pay dividends at the end of December 2024 at the same effective rate of $0.205/annum per common share.

The declaration, amount and payment of future cash dividends are subject to the board of directors' continuing determination that the payment of dividends is in the best interests of the Company, its shareholders and is in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends.

About Automotive Finco Corp.

Automotive Finco Corp. is a finance company focused exclusively on the auto retail sector. In addition to its interest in Automotive Finance Limited Partnership, the Company may also pursue other direct investments and financing opportunities across the auto retail sector.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information please refer to the Company's website at www.autofincocorp.com or contact Shannon Penney, Chief Financial Officer, at [email protected] or (905) 619-4996.