Monday, 4 November 2013

Carfinco To Significantly Add To Bottom Line – “Credit Where Credit is Due”

TSX: CFN
Shares Outstanding: 26.4 million
Shares Fully Diluted: 26.4 million
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Today, Carfinco announced that its bottom line will be positively impacted as its senior credit facilities have reduced the interest rate charges for both Carfinco and its newly acquired U.S. group, Persian Acceptance Corp, (PAC).

Effective November 1, Carfinco ‘s Bankers Acceptance Rate margin was reduced 50 basis points from 3.25% to 2.75% and Prime Rate margin was reduced from 1.75% to 1.50%.  PAC had its Libor Rate margin reduced 30 basis points from 4.45% to 4.15%.

If one were to look at the impact this has on the bottom line based on October finance receivables, the new reductions increase profitability by approximately $61,000 per month or roughly $730,000 annualized.