Rifco to Securitize Directly with a Canadian Schedule 1 Chartered Bank
RED DEER, AB / ACCESSWIRE / April 30, 2015 / Rifco Inc. (TSXV: RFC) is pleased to announce that its wholly owned subsidiary, Rifco National Auto Finance (“Rifco”), has completed a new Master Purchase and Servicing Agreement (“MPSA”) allowing for a direct securitization facility with a Canadian Schedule 1 chartered bank (“Bank”). Rifco has been receiving funding from this Bank through the Aviator Trust facility since July, 2012.
On October 14, 2014, Rifco announced an Aviator Trust securitization facility renewal with an increase to $30M. This new funding capacity has yet to be accessed, and will now be available directly from the Bank.
On April 10, 2015, Rifco and the Bank executed a MPSA, which will facilitate the new Bank Securitization facility. The Aviator Trust securitized financed receivables will continue to be administered by Securcor Financial Group and will run off in the normal course of loan repayments.
The Bank has now developed the internal capacity to support this administrative change.
In the future, for reporting purposes, Rifco will report the combined receivables as part of the new Bank securitization facility.
The terms, conditions and structure of the facility will remain unchanged, and the previous Aviator Trust renewal date of October 31, 2015 will become the renewal date for the new Bank facility. Rifco must continue to meet certain financial covenants.
Rifco currently has four funding facilities representing eight lenders. The funding facilities total $260M. The Company continues to meet all its financial covenants with all lenders.
Rifco employs a balanced approach for loan portfolio funding of equity, bank borrowing, subordinated debt and loan securitization funders. Management remains confident that access to additional funding for future growth will continue to be available as required.
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 “Fast Forward 500 Club” status 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, and exceptional service to its Dealer partners and its customers.
The common shares of Rifco Inc. are traded on the TSX Venture Exchange under the symbol “RFC”. There are 21.30 million shares outstanding and 22.70 million (fully diluted) shares.
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.
SOURCE: Rifco Inc.