Shares fully diluted: 26.4 million
There have been no other changes to the facility’s financial covenants. ATB joins existing members, Bank of America, N.A., Bank of Montreal and Wells Fargo.
The addition of ATB to the syndicate has allowed Carfinco the ability to issue 72 month contracts for clients with higher credit scores and effectively compete in a lower interest market. Until now, the Company could only issue a 60 month contract.
Carfinco’s CEO, Tracy Graf was quoted:
"We are very pleased to add such a strong Alberta institution to our banking syndicate. The $25 million increase in the facility gives us the flexibility to fund our various financing programs and will assist in achieving our targeted organic growth rate of 15% to 20% per year on the finance receivable portfolio."
Below is a history of the increases in facility size:
• February 2008: Increased facility from $65mm to $85mm and added Bank of Montreal to syndicate
• December 2008: Wells Fargo Financial Corporation Canada added to syndicate
• June 2010: Increased facility from $85mm to $105mm
• April 2011: Increased facility from $105mm to $130mm
• October 2012: Increased facility from $130mm to $180mm
See full news release here...