RED DEER, AB, Oct. 15 /CNW/ - RIFCO Inc. (TSX.V-RFC) today announced that it has renewed and increased its credit facility with BMO Bank of Montreal. The credit limit has been increased to $9.5M from the $7.5M previously authorized. The terms and security remain similar to the prior year's facility.
At September 30, 2009, the $9.5M senior credit line had $3.0M in outstanding Letters of Credit but was otherwise not drawn. The credit facility is typically used by RIFCO to grant non-traditional auto loans. These loans are carried 'on-book' prior to securitization funding. It will be RIFCO's goal to increase the level of on-book loans with the facility increase.
In July, RIFCO announced the renewal of its $30 million securitization facility with Securcor Trust.
In September, the Company announced a new securitization facility for $30M with a Schedule "1" Canadian Chartered Bank. This facility was accessed in September.
In total, RIFCO has $60 million per year in securitization facilities. Combined, these facilities have 89% in remaining authorized capacity.
The Company is cautiously optimistic that as funding conditions improve, growth opportunities will be restored for the company. Growth will be pursued only when it can be accomplished with acceptable lending margins and credit quality. The Company remains committed to granting loans that will perform within an established target range and with an acceptable profit margin.
RIFCO would also like to advise that it has updated its website. The Investor Presentations content has been updated to include a copy of the 2009 Annual Meeting of Shareholders presentation (including the PowerPoint slides and the speech text) as given by the President and CEO, Bill Graham.
As always, interested parties may register at RIFCO.NET to subscribe to receive email updates on the Company's activities.
RIFCO is one of Canada's fastest growing automotive finance companies. Non-traditional auto loans are indirectly originated through a growing network of selected new and used vehicle dealers operating in all provinces except Saskatchewan and Quebec.
The common shares of RIFCO INC. are traded on the TSX Venture Exchange under the symbol "RFC". There are 19.23 million shares (basic) outstanding and 20.98 million (fully diluted) shares.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts
responsibility for the adequacy or accuracy of this release.
SOURCE RIFCO INC.
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: firstname.lastname@example.org, Website: www.rifco.net