EDMONTON, May 16, 2013 /CNW/ - Carfinco Financial Group Inc. ("Carfinco"
or the "Company") today announced that it is adding Alberta based ATB
Financial ("ATB") to its banking syndicate and increasing its senior
credit facility by $25 million from $180 million to $205 million.
ATB will join the existing syndicate consisting of Bank of America,
N.A., Bank of Montreal and Wells Fargo Financial Corporation. There
have been no changes to the credit facility's financial covenants.
The eligibility requirements of the credit facility have been amended to
allow 72 month term contracts on the higher credit tiers of the
Company's risk-based pricing programs. The term was previously
restricted to 60 months and now contracts with more than a 60 month
term are restricted to a certain percentage of the Company's total
finance receivables. "This change provides the Company with the ability
to compete more effectively with other lenders already providing 72
month terms to customers with higher credit scores," said Mr. Troy
Graf, COO of Carfinco.
"We are very pleased to add such a strong Alberta institution to our
banking syndicate," stated Mr. Tracy Graf, CEO of Carfinco. "The $25
million increase in the facility gives us the flexibility to fund our
various financing programs and will assist in achieving our targeted
organic growth rate of 15% to 20% per year on the finance receivable
About Carfinco Financial Group Inc.
Carfinco focuses on providing consumer vehicle loans to borrowers unable
to obtain financing through traditional lending sources. A network of
select independent and franchise dealerships offer Carfinco's payment
plan to their customers who must, along with the vehicle, meet
Carfinco's underwriting guidelines. The shares of the company trade on
The Toronto Stock Exchange under the symbol "CFN".
About ATB Financial
ATB Financial is the largest Alberta-based deposit-taking financial
institution, established in 1938, with assets of $33 billion. We offer
retail financial services, business and agricultural financial
services, corporate financial services, and investor services to more
than 635,000 Albertans and Alberta-based businesses in 242 communities,
through over 170 branches and 130 agencies, in our province.
Caution Regarding Forward-Looking Statements - This news release
contains certain forward-looking statements, including statements
regarding the business and anticipated financial performance of the
company. These statements are subject to a number of risks and
uncertainties. Actual results may differ materially from results
contemplated by the forward-looking statements. When relying on
forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other uncertainties
and should not place undue reliance on such forward-looking statements.
SOURCE: Carfinco Financial Group Inc.
For further information:
Mr. Tracy A. Graf.
CEO & Director of Carfinco Financial Group Inc.
Web site: www.carfinco.com
The Howard Group Inc.
Web site: www.howardgroupinc.com