Red Deer, Alberta / ACCESSWIRE / April 29, 2014 / Rifco Inc. (TSXV: RFC) is pleased to announce that its wholly owned subsidiary Rifco National Auto Finance ("Rifco or Company"), has received a funding facility renewal from Securcor Trust for $80M. This renewal replaces a previously authorized $50M facility which had been 100% utilized.
The facility limit increase will accommodate new loan origination growth. Loans previously securitized have no effect on the utilization of the new facility limit.
With this renewal, the Company has four funding facilities representing eight lenders. The funding facilities now total $250M. In the last four reported quarters, the Company originated $110M in loans. Management is confident that the Company has the funding capacity and access to additional capital in order to execute its strategic plan.
Securcor is the Company's longest standing funder. Securcor and Rifco are now entering the 10th year of their relationship. The increased limit is confirmation of this important funding relationship.
The renewed funding facility continues under the Master Agreement originally executed on March 31, 2005. The renewed facility will expire on April 30, 2015. The renewal terms and rates are comparable to those previously received.
Rifco's strong loan performance within the funding facility continues to generate scheduled cash holdback releases in accordance with the facility parameters. The Company must continue to meet certain financial covenants under the renewal. The Company met all financial covenants in the prior year.
Rifco employs a balanced approach for loan portfolio funding of equity, bank revolving credit facility, subordinated unsecured debentures and loan securitization facilities.
About Securcor Corporation (Administrative Agent for Securcor Trust)
Securcor Corporation is a member of the Securcor Financial Group. Securcor provides customized securitization and structured financing programs for the automotive, equipment and consumer loan and leasing industries, and has originated more than $4.0 billion in auto financing, equipment leases and consumer loans since its inception.
Securcor facilitates the structuring and distribution of securities and provides portfolio tracking, reporting, audit and compliance management services, with a particular emphasis in the automotive and equipment industries. The address of the Securcor website is www.securcorfinancial.com.
About Rifco Inc.
Rifco Inc. operates through its wholly owned subsidiary Rifco National Auto Finance Corporation to provide automobile loans through its dealership network across Canada.
Rifco National Auto Finance provides consumers with financing options on new and used vehicles. Rifco specializes in building long-term partnerships with dealers by investing time in personalized services through dedicated account representatives. Rifco's quick credit decisions, common sense lending, and expedited funding processes give its dealers better financing options and more closed deals. Rifco's most successful partnerships result in "Fast Forward 500 Club" for its loyal dealerships.
Rifco is committed to continuing growth. Key strategies for achieving this growth include the expansion of its automobile dealer base, excellence in credit and collections processes.
The common shares of Rifco Inc. are traded on the TSX Venture Exchange under the symbol "RFC". There are 21.03 million shares outstanding and 22.21 million (fully diluted) shares.
---------------------------------------------- |CONTACT: | | |RifcoInc. | | |Lance A. Kadatz | | |Vice President and Chief Financial Officer| | |Telephone: 1-403-314-1288 EXT 7007 | | |Fax: 1-403-314-1132 | | |Email: [email protected] | | |Website:www.rifco.net | | ----------------------------------------------
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Rifco Inc.