Red Deer, Alberta, January 21, 2014: Rifco Inc. (TSX.V-RFC) today announced that its wholly owned subsidiary, Rifco National Auto Finance Corporation (Rifco), has successfully negotiated the Mountain View Credit Union (MVCU) securitization facility to be increased to $50 million from $20 million. The increase will include syndication with three other Alberta credit unions. MVCU will act as the syndication lead.
On January 20, 2014, a new agreement was executed in order to replace the agreement signed on June 25, 2010. It is believed that the new agreement will have a positive effect on reducing the effective cost of funds for the Company.
At December 31, MVCU held $7 million of Rifco's finance receivables under the existing facility. Finance receivables previously securitized will not be restructured and will pay down in the normal course of business. This total, aggregate amount of finance receivables will be subtracted from the new $50 million syndicate limit in order to determine initial availability. Syndicate limit availability will increase with finance receivable pay downs and will decrease with new sales of Finance Receivables into the syndicated facility.
This facility, along with other securitization facilities, is in addition to the $95 million bank borrowing facility.
Rifco funds a percentage of its loan originations through securitization. Regular sales of loan receivables to funding partners (securitization), provides cash resources for new originations. Rifco continues to service all sold finance receivables and maintains a retained interest in the loans through a performance-based cash holdback and/or loan over collateralization.
About Mountain View Credit Union
Mountain View Credit Union is a member-owned, Central Alberta-based financial institution with 12 branches and assets of $568 million. Mountain View is headquartered out of Olds, and serves over 17,000 personal, business and agriculture members in 12 communities.
The credit union opened its first branch in Cremona in 1943, and has continued to grow over their 69-year history. They now employ 110 people throughout Central Alberta.
Mountain View provides a complete line of banking services, including personal, business and agricultural: demand accounts, investments, financing, insurance, and 24-hour on-line banking.
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 graduated recognition programs 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 20.95 million shares (basic) outstanding and 22.21 million (fully diluted) shares.
|CONTACT: Rifco INC. Lance A. Kadatz Vice| |
|President and Chief Financial Officer | |
|Telephone: 1-403-314-1214 EXT 7007 Fax: | |
|1-403-314-1132 Email: [email protected] | |
|Website: www.rifco.net | |
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