EDMONTON, June 19, 2014 /CNW/ - Carfinco Financial Group Inc.
("Carfinco" or the "Company") announces that effective today, Carfinco
repaid all outstanding subordinated debt ("sub-debt") provided by third
parties to its US subsidiary, Persian Acceptance Corp. ("PAC"). The
total amount of sub-debt currently provided to PAC is $5.8 million US
dollars and carries an annual interest rate of 13%. Under the terms of
the sub-debt agreements, the sub-debt may be repaid at any time without
"By repaying the outstanding sub-debt held by its US subsidiary,
Carfinco will realize pre-tax interest cost savings of approximately
$575,000 in Canadian funds on an annualized basis", stated Mr. Tracy
Graf, CEO of Carfinco. "This is a substantial savings for Carfinco and
moves our financial leverage ratio to approximately 2.40:1. This brings
the financial leverage ratio closer to management's expectations of
3.0:1, yet retains flexibility to pursue additional opportunities."
About Carfinco Financial Group Inc.
Carfinco, through its Canadian and United States subsidiaries
(collectively, "Carfinco"), focuses on providing indirect consumer
vehicle loans to borrowers unable to obtain financing through
traditional lending sources. A network of select independent and
franchise dealerships offer the Subsidiaries payment plans to their
customers who must, along with the vehicle, meet the Subsidiaries
underwriting guidelines. The shares of Carfinco trade on The Toronto
Stock Exchange under the symbol "CFN".
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