RED DEER, AB, June 4 /CNW/ - RIFCO Inc. (TSX.V-RFC) today announced that
Community Credit Union Ltd (CCU) has granted RIFCO a new annual facility of
$30,000,000 for the purpose of securitizing loan receivables. CCU has been
purchasing loan receivables through securitizations for over 5 years.
RIFCO maintains and utilizes a $20 million securitization facility with
Securcor Trust. RIFCO expects to maintain and utilize both facilities.
Securitization is the manner in which RIFCO funds a percentage of its
loan originations. Regular sales of loan receivables into special purpose
trust entities, in which the company is not a beneficiary, provide cash
resources for new originations. RIFCO continues to service all sold loan
contracts and maintains a retained interest in the loans through a
RIFCO continues to successfully pursue its strategic plan to strengthen
the company's balance sheet while at the same time allowing the company to
pursue its robust growth objectives with confidence.
Access to increasing amounts of low cost capital is important to the
company's growth aspirations. In the last reported quarter RIFCO originated
over $5M in loans and in March 2007 announced that it reached the $50 million
milestone in loan originations.
A second securitization facility improves the company's overall access to
funds and it is expected that multiple securitization sources will ultimately
provide for stronger value creation for shareholders.
RIFCO Inc.'s business operating entity, the wholly-owned subsidiary,
Repair Industry Finance Corporation ("Repair Industry"), is party to an
agreement with CCU pursuant to which Repair Industry may transfer secured
vehicle and repair loans to CCU for payment to Repair Industry of an amount
calculated pursuant to the agreement. The agreement provides that Repair
Industry may request the transfer of loans from time to time, up to a total
facility amount of $30 million.
About RIFCO Inc.
RIFCO Inc. operates through its wholly owned subsidiary Repair Industry
Finance Corporation. RIFCO is a specialty consumer finance corporation that
provides Automotive & Commercial Repair Financing and Vehicle Purchase
Financing to mid-market motorists.
About Community Credit Union
Community Credit Union, operating as Community Savings, has 30 locations
in 23 Alberta communities geographically distributed from Ponoka south to the
US border. They are the sixth largest credit union in Canada with over
$2.4 Billion in assets. Their three new Calgary branches, opening in the first
half of 2008, will complement hubs of operation in Red Deer, Medicine Hat and
The common shares of RIFCO INC. are traded on the TSX Venture Exchange
under the symbol "RFC". RIFCO Inc. has 19.23 million shares outstanding.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: RIFCO INC., Lance A. Kadatz, Vice President and
Chief Financial Officer, Telephone: (403) 314-1214 Ext 111, Fax: (403)
314-1132, Email: email@example.com, Website: www.rifco.net