Rifco's Securitization Facility with Bank West Expires
January 22 2014 - 10:38AM
Access Wire
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.
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.
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: kadatz@rifco.net | |
|Website: www.rifco.net | |
------------------------------------------------
Neither TSX Venture Exchange nor its
Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.
RIFCO (TSXV:RFC)
Historical Stock Chart
From Aug 2024 to Sep 2024
RIFCO (TSXV:RFC)
Historical Stock Chart
From Sep 2023 to Sep 2024