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 "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.
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