EDMONTON, June 22 /CNW/ - Carfinco Income Fund ("Carfinco" or the "Fund"), Canada's leading automotive specialty finance income fund, today announced that its credit facility has been increased to $105 million. The banking syndicate remains the same with Bank of America, N A., Bank of Montreal and Wells Fargo Financial Corporation Canada providing the credit facility.
- An increase in the senior credit facility to $105 million from
- Interest rate charged on the facility remains unchanged at prime
- Credit facility term extended three years to June 30, 2013
- Financial leverage ratio changed to 3.50:1 from 3.75:1
"This increase assists us in achieving our objective of growing the finance receivables by approximately 20% per year," said Tracy Graf, Carfinco's President & CEO. "We appreciate the confidence the banking syndicate has shown in our ability to execute our business plan. This is the sixth increase in the credit facility since Bank of America provided the original facility of $18 million in August 2000."
As at May 31, 2010, the outstanding balance on the credit facility was $77.2 million.
About Carfinco Income Fund
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 units of the Fund trade on The Toronto Stock Exchange under the symbol "CFN.UN".
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Fund. 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: For further information: Mr. Tracy A. Graf, CEO & Trustee of Carfinco Income Fund, Telephone: 1-888-486-4356, Facsimile: 1-888-486-7456, E-mail: email@example.com; OR The Howard Group Inc., Jeff Walker, Dave Burwell, Investor Relations, Telephone: 1-888-221-0915, Telephone: 403-221-0915, E-mail: Info@howardgroupinc.com, Website: www.howardgroupinc.com