RED DEER, AB, Dec. 17 /CNW/ - RIFCO Inc. (TSX.V-RFC) today announced that
the Company has received and accepted the annual renewal of its $7.5M credit
facility with BMO Bank of Montreal. The terms, rates, limits and security
remain unchanged from those of the prior year's facility.
RIFCO has experienced no interruptions to its financing solutions since
the ABCP issues became significant in August 2007.
RIFCO remains in an excellent liquidity position. Our $7.5 million senior
credit line is used to build up our on-book loan inventory before
securitization. Since the end of Q2 the Company has also increased its
unsecured debenture financing by $1 million to $3.5 million at an average cost
of 10.5%. RIFCO also maintains two $30 million per year securitization
facilities from Securcor Trust & Community Credit Union and regularly
securitizes monthly. The average borrowing cost for RIFCO is 8.17% as of the
end of Q2.
About RIFCO Inc
RIFCO is a specialty consumer finance corporation currently providing
motorists with non-prime Auto Purchase Financing and mid-market Automotive &
Commercial Repair Financing. RIFCO has a growing network of new & used vehicle
dealers and licensed repair facilities operating in all provinces except
Saskatchewan and Quebec. RIFCO Inc. operates through its wholly owned
subsidiary Repair Industry Finance Corporation.
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