TORONTO, Jan. 9, 2018 /CNW/ - Dealnet Capital Corp. ("Dealnet" or the "Company") (TSXV: DLS), is pleased to announce that it has finalized the previously announced $15 million warehouse facility with a Canadian life insurance company ("LifeCo Warehouse Facility") and that today it has taken its first advance of approximately $8.5 million under the facility.
The LifeCo Warehouse Facility provides the Company with enhanced flexibility and diversity and at a lower cost of funds. The LifeCo Warehouse Facility is revolving in nature with no stand-by fee which allows the Company to draw down against the facility when needed, but also repay funds upon a securitization transaction in order to minimize interest costs.
"The closing and first advance under this new warehouse facility is another step towards the Company executing on its 2018 business plan. This new and enhanced warehouse facility provides the Company with considerable flexibility, and replaces existing capacity at a significantly lower cost of funds." said Brent Houlden, Dealnet's Interim Chief Executive Officer.
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.
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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]