Thursday, 16 May 2013

Carfinco Adds $25 Million And ATB Financial To Its Syndicate

Shares outstanding: 26.4 million
Shares fully diluted: 26.4 million

Carfinco has just announced that Alberta based ATB Financial has joined the company’s banking syndicate. Carfinco’s credit facility has also been increased to $205 million from $180 million.  ATB is the largest Alberta-based deposit-taking financial institution with assets of $33 billion.

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...