EDMONTON, May 16, 2013 /CNW/ - Carfinco Financial Group Inc. ("Carfinco" or the "Company") today announced that it is adding Alberta based ATB Financial ("ATB") to its banking syndicate and increasing its senior credit facility by $25 million from $180 million to $205 million.
ATB will join the existing syndicate consisting of Bank of America, N.A., Bank of Montreal and Wells Fargo Financial Corporation. There have been no changes to the credit facility's financial covenants.
The eligibility requirements of the credit facility have been amended to allow 72 month term contracts on the higher credit tiers of the Company's risk-based pricing programs. The term was previously restricted to 60 months and now contracts with more than a 60 month term are restricted to a certain percentage of the Company's total finance receivables. "This change provides the Company with the ability to compete more effectively with other lenders already providing 72 month terms to customers with higher credit scores," said Mr. Troy Graf, COO of Carfinco.
"We are very pleased to add such a strong Alberta institution to our banking syndicate," stated Mr. Tracy Graf, CEO of Carfinco. "The $25 million increase in the facility gives us the flexibility to fund our various financing programs and will assist in achieving our targeted organic growth rate of 15% to 20% per year on the finance receivable portfolio."
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".
About ATB Financial
ATB Financial is the largest Alberta-based deposit-taking financial institution, established in 1938, with assets of $33 billion. We offer retail financial services, business and agricultural financial services, corporate financial services, and investor services to more than 635,000 Albertans and Alberta-based businesses in 242 communities, through over 170 branches and 130 agencies, in our province.
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: