RED DEER, AB, Sept. 1 /CNW/ - RIFCO Inc. (TSX.V-RFC) today announced that
it has negotiated a new securitizing facility of $30M with a Schedule 1
Canadian Chartered Bank.
The new facility, subject to renewal on Oct 31, 2010, is for the purpose
of funding non-traditional loan receivables. It is expected that the
additional facility will allow RIFCO to pursue more robust growth objectives.
Access to increasing amounts of low cost capital is paramount to RIFCO's
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
With the new facility, RIFCO has access to two separate facilities each
authorized for $30M. The Company believes that access to multiple funding
options remains a prudent business measure to provide shareholders with
stronger value creation. It is expected that both securitization sources will
be utilized on an ongoing basis.
RIFCO Inc.'s business operating entity, the wholly-owned subsidiary,
Repair Industry Finance Corporation ("Repair Industry"), is party to an
agreement to which Repair Industry may transfer secured vehicle contracts to
the Chartered Bank 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 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". RIFCO Inc. has 19.23 million shares outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts
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