EDMONTON, Nov. 4, 2013 /CNW/ - Carfinco Financial Group Inc. ("Carfinco"
or the "Company") today announced that its subsidiaries Carfinco Inc.
("CAR") and Persian Acceptance Corp. ("PAC") have both received
reductions in the interest rates charged on their senior credit
facilities from their respective lenders. All other terms and maturity
dates on the two credit facilities remain the same.
Effective November 1, 2013, CAR's Banker's Acceptance ("BA") Rate Margin
was reduced 50 basis points from 3.25% to 2.75% and the Prime Rate
margin was reduced 25 basis points from 1.75% to 1.50%. Substantially
all of CAR's senior credit facility is locked in at BA rates and the
current all-in BA rate was reduced from 4.47% to 3.97%.
Also effective November 1, 2013, PAC's LIBOR Rate Margin was reduced 30
basis points from 4.45% to 4.15%. The current all-in rate on PAC's
senior credit facility was reduced from 4.75% to 4.45%.
"We are pleased to receive the rate reduction from CAR's lending
syndicate lead by Bank of America, N.A., and including Wells Fargo
Financial Corporation, Bank of Montreal and Alberta Treasury Branches.
We also thank Wells Fargo Bank, N.A. for the rate reduction to the PAC
facility," stated Mr. Tracy Graf, CEO of Carfinco.
"The financial impact for Carfinco is significant with CAR's interest
expense decreasing approximately $56,500 per month and PAC's interest
expense decreasing approximately $5,400 USD per month, based on October
31, 2013 credit facility balances," Mr. Graf reports.
About Carfinco Financial Group Inc.
Carfinco, through its Canadian and United States subsidiaries (the
"Subsidiaries"), 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
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