Monday, 5 November 2012

Carfinco Poised For Further Growth

TSX: CFN
Shares outstanding: 24.65 million
Shares fully diluted: 24.65 million
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Carfinco has spoken many times about maintaining its annual 20% growth, but to continue on this path its banking syndicate is key to hitting the target. It was announced late today that Carfinco's lenders increased its credit facility by $50 million or 38% to $180 million over the current $130 million.

The syndicate consists of Bank of America, Bank of Montreal and Wells Fargo with a two year term extending to November 5th, 2014. The loan has an interest rate of Bankers Acceptance Rate plus 3.25% and not to exceed leverage of 3.50:1. The current leverage ratio is under 3:1.