RED DEER, AB, Sept. 26, 2011 /CNW/ - RIFCO Inc. (TSXV: RFC) is pleased
to announce that it has received its 6th annual renewal on its funding facility with Securcor Trust. This
renewal replaces the previous $30M facility with a new facility that
has been increased to $50M. Securcor is a valued business partner and
the Company's longest standing funder. The $20M increase in the level
of commitment is a testament to our long standing partnership and an
endorsement of RIFCO's business model.
This facility will allow us to securitize up to $50M in total loans this
year. Loans sold in prior years are unaffected by the revised terms and
have no effect on the utilization of the new facility limit.
In addition, RIFCO's strong loan performance within the facility
continues to generate scheduled cash holdback releases in accordance
with the facility parameters. The Company must continue to meet certain
financial covenants under the renewal. The Company met all financial
covenants in the prior year.
RIFCO employs a balanced approach for loan portfolio funding of equity,
bank credit lines, subordinated debt and loan securitization funders.
The renewed facility continues under the Master agreement completed on
March 31, 2005 for a term that will expire on September 30, 2012.
About Securcor Corporation (Administrative Agent for Securcor Trust)
Securcor is a specialized Toronto-based investment banking operation
providing customized securitization and structured financing services
to mid and large sized Canadian companies.
Securcor has a strong presence in the automotive dealer and automotive
leasing industry. Securcor has key funding relationships with several
leading Canadian and U.S. financial institutions. Securcor senior
management team has more than 125 years of related industry experience.
The address of the Securcor website is www.securcor.com.
RIFCO Inc. operates through its wholly owned subsidiary Rifco National
Auto Finance Corporation to provide automobile loans through its
dealership network across Canada.
Rifco National Auto Finance provides consumers with financing options on
new and used vehicles. Rifco National Auto Finance specializes in
building long-term partnerships with dealers by investing time in
personalized services through dedicated account representatives.
Rifco's quick credit decisions, common sense lending, and expedited
funding processes give its dealers better financing options and more
closed deals. Rifco's most successful partnerships result in graduated
recognition programs for its loyal dealerships.
Rifco is committed to continuing growth. Key strategies for achieving
this growth include the expansion of its automobile dealer base,
excellence in credit and collections processes, and exceptional service
to its Dealer partners and its customers.
The common shares of RIFCO INC. are traded on the TSX Venture Exchange
under the symbol "RFC". There are 19.78 million shares outstanding and
21.34 million (fully diluted) shares.
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.
SOURCE RIFCO Inc.
For further information:
Lance A. Kadatz
Vice President and Chief Financial Officer
Telephone: 1-403-314-1288 EXT 7007