Red Deer, Alberta. January 22, 2014; Rifco Inc. (TSXV: RFC) is announcing that it has not renewed its Bank West securitization facility. The facility was originally established in August 2009 and had a $30M revolving facility limit. Rifco has active securitization facilities with 3 other financial institutions.
On December 23, 2010, Bank West, a subsidiary of Western Financial Group, was purchased by Desjardins Financial Group. Rifco has not utilized the Bank West facility since October of 2012. Rifco's utilization of the facility has dropped from 92% to 48% in the last year.
As per the Master agreement signed on August 31, 2009, Rifco will continue to administer the remaining $14.3M auto loan portfolio. The portfolio balance will naturally reduce as borrower payments are made over the coming years.
On January 21, 2014, Rifco announced an increase to its Mountain View Credit Union facility from $20M to $50M, through a syndication, that includes three additional Alberta credit unions.
Rifco's total securitization facilities now have utilization limits totaling $120M.
Rifco employs a balanced approach for loan portfolio funding of equity, bank debt, subordinated debt and loan securitization funders.
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 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: 1-403-314-1288 EXT 7007 Fax: | |
|1-403-314-1132 Email: [email protected] | |
|Website: www.Rifco.net | |
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