Carfinco Announces $25 Million Increase in Credit Facility, Record Loan Originations and Addition of Financing Programs

TSX: CFN.UN

EDMONTON, April 5 /CNW/ - Carfinco Income Fund ("Carfinco" or the "Fund") today announced that its credit facility has been increased to $130 million from the previous limit of $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. The interest rate, term and financial leverage ratio remain unchanged.

Carfinco also announces record loan originations during the month of March with over $10 million in new loans being originated.

"The $25 million increase provided by the banking syndicate facilitates our growth plans, as the record loan originations in March demonstrate the demand for Carfinco's loan programs within the automotive dealership network in Canada," states Tracy Graf, CEO of the Fund.

"We are also pleased to announce, the Fund will be providing additional financing programs to the Carfinco approved dealerships, initially in the province of Alberta, as we introduce risk based pricing programs. The addition of these new financing tiers moves us closer to our goal of being a "one stop" non-prime financing source within the Canadian automotive industry," added Graf.

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 Income Fund

For further information:

Mr. Tracy A. Graf      The Howard Group Inc.
CEO & Trustee of Carfinco Income Fund      Jeff Walker/Dave Burwell
Telephone:  1-888-486-4356      Investor Relations
Facsimile:  1-888-486-7456      Telephone:  1-888-221-0915
E-mail: tgraf@carfinco.com      E-mail: Info@howardgroupinc.com
Web site:  www.carfinco.com      Web site: www.howardgroupinc.com

 

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Carfinco Income Fund

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