Press release from TheNewswire.ca
Rifco Increases Credit Facility to $95M through Syndicate with ATB Corporate Financial Services
Thursday, August 01, 2013
Rifco Increases Credit Facility to $95M through Syndicate with ATB Corporate Financial Services07:30 EDT Thursday, August 01, 2013
Red Deer, Alberta, August 1 st , 2013; Rifco National Auto Finance Corporation (TSXV: RFC) ("Rifco" "Company"), is pleased to announce that the Company's previous $70M credit facility with Wells Fargo has been increased to $95M and has been syndicated to include ATB Corporate Financial Services.
Wells Fargo is the lead on the syndicated credit facility. The facility retains its November 2015 renewal date and all other terms and conditions remain unchanged.
Rifco has immediate access to the increased limit on the credit facility.
Rifco is very pleased to have ATB Corporate Financial Services as a key funding partner. ATB Financial is a progressive leader in financial services and the largest Alberta-based financial institution.
Rifco employs a balanced approach for its treasury management that includes equity, bank borrowing, unsecured debentures and loan securitization. The increased bank credit facility provides improved funding balance with the current $120M in securitization facilities. Rifco has six funders that include Canadian and American banks, an Alberta credit union and a Canadian insurance company.
Rifco recently recast its vision. The Company's vision is to become a $500 million per year lender. To reach this vision, the Company expects to achieve a loan origination growth rate of between 30% and 50% per year.
The Company continues to pursue timely increases to both the bank credit facility limit and securitization capacity. Rifco is confident that as it grows, the required funding capacity can be accessed at acceptable rates and terms.
About ATB Financial
ATB Financial is the largest Alberta-based financial institution, with assets of over $33 billion. ATB provides retail, business and agri-business, and investment solutions through 171 branches and 130 agencies to over 650,000 customers. Through its ATB Corporate Financial Services division, ATB offers a wide range of custom-built solutions from capital, cash management and financial markets to commercial and corporate businesses operating in industries critical to the Alberta economy including the energy, real estate, food & forestry and diversified sectors. ATB Financial also has a strategic alliance with AltaCorp Capital Inc., an institutional financial advisory firm offering a full spectrum of value-added financial and advisory services to corporations in varied stages of development.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.4 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs and the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank's customers who conduct business in the global economy. With more than 270,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune's 2013 rankings of America's largest corporations. Wells Fargo's vision is to satisfy all our customers' financial needs and help them succeed financially.
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 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 20.89 million shares (basic) outstanding and 22.21 million (fully diluted) shares.
Lance A. Kadatz
Vice President and Chief Financial Officer
Telephone: 1-403-314-1288 Ext 7007
Certain information contained in this press release, including information and statements which may contain words such as "objective", "estimates", "would", "will", "contemplates", "expects" and similar expressions and statements relating to matters that are not historical facts, are forward-looking information including, but not limited to, information as to future performance.
This forward-looking information is based on certain material factors, assumptions and analyses made by Rifco in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform with Rifco's conclusions, forecasts, projections, expectations and predictions expressed or implied by the forward-looking information in this press release is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from Rifco's conclusions, forecasts, projections, expectations and predictions expressed or implied by the forward-looking information in this press release, including: adverse market and economic conditions. Additional risks may be described in Rifco's Annual Report for the most recently completed financial year end which may be found on SEDAR at www.sedar.com. If any of the above risks or uncertainties materialize, or if the material factors, assumptions and analyses applied by Rifco are incorrect, actual results may vary materially from those expected in the forward-looking information in this press release.
Consequently, all of the forward-looking information contained in this press release is qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by Rifco expressed or implied by the forward-looking information in this press release will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Rifco or its business operations. Rifco assumes no obligation, except as required by law, to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise. Readers should not place undue reliance on forward-looking information.
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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