EDMONTON, March 9, 2012 /CNW/ - Carfinco Financial Group Inc. ("Carfinco" or the "Company") announces that a cash dividend of 3.0 cents per share has been declared for March 2012, with a payable date of March 30, 2012, to shareholders of record on March 20, 2012. The ex-distribution date is March 16, 2012.
The Company has also entered into an interest rate swap agreement with a notional amount of $100,000,000, a fixed bankers' acceptance rate of 1.55% and a three year term that ends on March 9, 2015. Carfinco regularly monitors our interest rate swap position to minimize our exposure to interest rate risk.
"Entering into this swap agreement is beneficial for both the Company and its shareholders as it reduces the business risk of increasing interest rates on $100 million of our senior debt over the next three years," stated Tracy Graf, CEO of Carfinco.
About Carfinco Financial Group Inc.
Carfinco focuses on providing consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. A network of select independent and franchise dealerships offer Carfinco's payment plan 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.
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