The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Hometown Auto Enters Into $100M Credit Facility With GE Capital AFS

11 January 1999

Hometown Auto Enters Into $100 Million Credit Facility With GE Capital AFS


    WATERTOWN, Conn.--Jan. 8, 1999--HOMETOWN AUTO RETAILERS, INC. (Nasdaq NM - HCAR) today announced it has entered into an agreement with GE Capital Auto Financial Services providing the Company with a $100 million credit facility.
    The credit facility provides $85 million to finance the Company's "floor plan," new and used car inventory, and $15 million for acquisitions.
    Joseph Shaker, President and Chief Operating Officer said, "The closing of this agreement with GE Capital is a significant milestone for Hometown Auto Retailers. Hometown will save significant interest expense utilizing the GE facility for floor plan financing."
    "With the funds from our initial public offering and the $15 million acquisition line we now have the financial strength to move forward aggressively with our acquisition model and achieve our goal of becoming the leading consolidator and operator of dealerships in the highly fragmented Northeastern marketplace. Over the next two months, we expect to close several acquisitions, both tuck-ins and independent operations."
    Hometown Auto Retailers, Inc. is engaged in the business of selling new and used cars and light trucks, providing maintenance and repair services, selling replacement parts and providing related financing, insurance and service contracts through eight franchised dealerships located in New Jersey, Connecticut, Massachusetts and Vermont. The Company's dealerships offer 12 American and Asian automotive brands, including Chevrolet, Chrysler, Dodge, Eagle, Ford, Isuzu, Jeep, Lincoln, Mercury, Oldsmobile, Plymouth and Toyota. The Company also operates a free-standing neighborhood collision repair center and is active in two "niche" segments of the automotive market: the sale of Lincoln Town Cars and limousines to livery car and livery fleet operators and the maintenance and repair of cars and trucks at a Ford and Lincoln Mercury factory authorized free-standing service center.
    This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expressed or implied. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Therefore, there can be no assurance than any forward-looking statement will prove to be accurate.