Red Deer, Alberta. January 23, 2012; RIFCO Inc. (TSXV: RFC.V) is pleased to announce that RIFCO National Auto Finance Corp has received a new securitization facility through Aviator Trust for $20M. The ultimate funding source on the new facility is from a Schedule 1 Canadian Chartered Bank.
This new facility will allow RIFCO to securitize an additional $20M in loans. The facility structure and pricing are competitive with the three existing facilities. The facility is subject to an annual renewal. RIFCO's existing loan securitization facilities now total $120M. RIFCO has projected to originate $65M in auto loans in the year ending March 31, 2012, a 48% growth rate over the prior year. The Company's funding capacity is well positioned to handle the continuing growth.
The Company must meet certain financial covenants under the new facility which are similar to those on existing facilities. The Company has met all of the proposed financial covenants in the prior year. This facility, like all existing facilities, will generate cash holdback releases in accordance with the facility parameters.
RIFCO employs a balanced approach for loan portfolio funding of equity, bank credit lines, subordinated debt and loan securitization funders.
About Securcor Financial Group (Administrative Agent for Aviator Trust)
Aviator Corporation is a member of the Securcor Financial Group. Securcor provides customized securitization and structured financing programs for the automotive, equipment, consumer loan and leasing industries, and has originated more than $3.0 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.securcor.com.
About RIFCO
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, and exceptional service to its Dealer partners and its customers.
The common shares of RIFCO INC. are traded on the TSX Venture Exchange under the symbol "RFC". There are 19.81 million shares outstanding and 21.34 million (fully diluted) shares.
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|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: kadatz@rifco.net | |
|Website: www.rifco.net | |
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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.
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