Carfinco Financial Group Inc.
EDMONTON, Sept. 9, 2013 /CNW/ - Carfinco Financial Group Inc. ("Carfinco" or the "Corporation") today announced the addition of Peter Miller of Aiken, South Carolina, USA, to its Board of Directors. Mr. Miller is the President of Persian Acceptance Corp. ("PAC"), a Massachusetts based sub-prime automobile lender which was acquired by Carfinco PAC Inc., a wholly owned, Delaware incorporated, subsidiary of Carfinco, on September 4, 2013.
Mr. Miller brings more than 19 years of experience in the United States sub-prime automobile lending industry. Prior to co-founding PAC in 1998, Mr. Miller spent 10 years as the General Manager of a family owned multi-franchise new car dealership that generated as much as $300 million in sales a year and employed 300 people. He then owned a wholesale finance company that brokered sub-prime retail contracts for used car dealers in many states and also provided floor plan financing for those dealers. Mr. Miller moved to the retail finance industry with the formation of PAC and has grown the business to a $42.7 million portfolio operating with 46 employees. Before his professional career began Mr. Miller earned a Bachelor of Arts in Economics at Duke University and a MBA at the Fuqua School of Business at Duke University.
"We look forward to having Mr. Miller's insight on the Board of Directors," said David Rosenkrantz, Chairman of the Board. "His experience in the non-prime automobile lending industry, and specifically, the US marketplace, will be a tremendous addition to the Board."
Under the continued leadership of Peter Miller, PAC will operate as a subsidiary of Carfinco utilizing a US senior credit facility to fund the acquisition of finance receivables. The US senior credit facility has been provided by Wells Fargo Bank, N.A. and has a USD $30 million commitment, of which USD $21.5 million was utilized on September 4, 2013. This facility carries an interest rate of US Libor plus 4.45%, a maximum financial leverage ratio of 3.50:1, and a maturity date of September 4, 2015. Wells Fargo Bank, N.A. has a security interest covering all property held by PAC with a guarantee from Carfinco PAC Inc. No corporate guarantees have been provided by any of Carfinco's Canadian entities on this facility.
In addition to the US senior credit facility, PAC currently has USD $5.81 million outstanding in subordinated debt, which carries an interest rate of 13%. The subordinated debt is unsecured, non-convertible, non-redeemable and may be paid out by PAC at any time without penalty.
Carfinco continues to fund its Canadian operations through its wholly owned Canadian subsidiary, Carfinco Inc., using a CAD $205 million senior credit facility with our existing lending syndicate, which includes Bank of America, N.A., Wells Fargo Financial Corporation Canada, Bank of Montreal and Alberta Treasury Branches. As of September 4, 2013, CAD $134.8M was outstanding on our Canadian facility providing the Company with substantial capital availability to continue our targeted organic growth rate of 15% to 20% per annum in Canada.
About Carfinco Financial Group Inc.
Carfinco focuses on providing indirect financing for consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources, through its subsidiaries in Canada and the United States of America. A network of select independent and franchise dealerships offer Carfinco's payment plans to their customers who must, along with the vehicle, meet Carfinco's underwriting guidelines. The shares of the company trade on The Toronto Stock Exchange under the symbol "CFN".
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: