- Bank of Montreal Joins Syndicate with BoS (USA) Inc.
and Bank of America, N.A. -
EDMONTON, Feb. 13 /CNW/ - Carfinco, Canada's leading automotive specialty
finance income fund, today announced that its credit facility has been
increased to $85 million and that Bank of Montreal has joined BoS (USA) Inc.
and Bank of America, N.A. as senior lenders of Carfinco.
- Increases senior debt facility to $85 million from $65 million
(previous increase to $65 million from $50 million was in October
- Further diversifies Carfinco's credit facility with the addition of
Bank of Montreal to the syndicate
- Rate of interest charged on the facility, based on the Canadian
prime rate, remains the same and the term of the facility is
extended to February 13, 2009
"This is another positive step in Carfinco's dual mission of achieving
growth and stability - and represents an important vote of confidence from our
senior lenders and reflects the differences between Carfinco's business of
Canadian non-prime automotive loans and the US sub-prime housing market," said
Tracy Graf, Carfinco's President & CEO. "We are pleased to have Bank of
Montreal join the syndicate; this increase supports the growth momentum in our
finance receivables, which have grown from $27 million five years ago to
$96 million as at November 30, 2007. "
About Carfinco Income Fund
A growth-oriented income trust, Carfinco focuses on providing consumer
car loans to borrowers unable to obtain financing through traditional lending
sources. A growing 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
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. The Fund
does not undertake to update any forward-looking statements, oral or written,
made by itself or on its behalf.
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: