TORONTO, Jan. 11, 2018 /CNW/ - Dealnet Capital Corp. ("Dealnet" or the "Company") (TSXV: DLS), announces that today it has fully redeemed its outstanding $16 million 9% secured debentures in cash. The secured debentures were used by the Company during 2017 to warehouse and season new finance receivables prior to being eligible for securitization with the Company's securitization lenders.
Following the repayment of the above noted debenture and with the addition of the new $15 million revolving warehouse facility announced earlier this week, the Company now has current warehouse capacity of approximately $42 million with a weighted average interest rate below 6% based on current market rates. In addition to a lower cost of funds and expanded flexibility, the new $15 million warehouse capacity is revolving in nature with no stand-by fee which allows the Company to draw down against the facility when needed and to repay funds upon a securitization transaction. This further reduces the Company's effective warehousing costs.
With the repayment of this 9% debenture and the activation of its new warehouse facility, the Company has aligned the cost and capacity of its funding structure to support its 2018 business plans.
About Dealnet Capital Corp.
Dealnet is a specialty finance company servicing the $20 billion home improvement finance market through both dealer-based and direct homeowner-based originations of secured finance assets (equipment leases and loans). The company earns net finance income over the term of these assets and from fee income derived from the transaction support services that it provides to its dealer network. The Company also uses its engagement platform to provide customer support services on a contract basis to third-party institutions.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
SOURCE Dealnet Capital Corp.
For further information: Brent Houlden, Chief Executive Officer, (905) 695-8557 ext.1145, [email protected]; John Sadler, Senior Director - Corporate Communications, (905) 695-8557 ext. 1348, [email protected]