RIFCO INC.
TSX VENTURE : RFC

RIFCO INC.

August 12, 2008 12:37 ET

RIFCO Renews $30 Million Securcor Trust Securitization Facility

RED DEER, ALBERTA--(Marketwire - Aug. 12, 2008) - RIFCO Inc. (TSX VENTURE:RFC) is pleased to announce that it has successfully renewed its funding facility with Securcor Trust. This renewal replaces the previous $30M facility with a new facility in the same amount.

The renewal pricing is at an increased cost to RIFCO. In context of the credit market turmoil, some increased pricing was expected. Increases in cost of funds have become common in the industry as has been reported by many North American auto lenders.

With RIFCO's strong loan performance within the facility, leverage terms on retained interest cash holdback will improve over a year ago.

RIFCO must continue to meet certain financial covenants under the new agreement. Identical covenants were met throughout the past year under the previous agreement.

The new facility continues under the Master agreement completed on March 31, 2005 for another 12 month term that will expire on June 30, 2009.

RIFCO employs a balanced approach for loan portfolio funding of equity, senior debt lines, subordinated debt and two loan securitization funders.

RIFCO Inc.'s business operating entity, the wholly-owned subsidiary, Repair Industry Finance Corporation (the "Company") is party to the agreement with Securcor Trust (the "Master Agreement") pursuant to which the Company may transfer secured vehicle loans to Securcor Trust for payment of an amount calculated pursuant to the Master Agreement. The Master Agreement provides that the Company may request the transfer of loans from time to time, subject to certain minimums, up to a total facility amount of $30 million.

About Securcor Corporation (Administrative Agent for Securcor Trust)

Securcor is a specialized Toronto-based investment banking operation providing customized securitization and structured financing services to mid and large sized Canadian companies.

Securcor has a strong presence in the automotive dealer and automotive leasing industry. Securcor has key funding relationships with several leading Canadian and U.S. financial institutions. Securcor senior management team has more than 125 years of related industry experience. The address of the Securcor website is www.securcor.com.

About RIFCO Inc

RIFCO is an auto purchase finance Company currently providing motorists with near-prime/non-prime financing through a growing network of selected new and used vehicle dealers operating in all provinces except Saskatchewan and Quebec. RIFCO Inc. operates through its wholly owned subsidiary Repair Industry Finance Corporation.

The common shares of RIFCO INC. are traded on the TSX Venture Exchange under the symbol "RFC". RIFCO Inc. has 19.23 million shares outstanding.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release

Contact Information

  • RIFCO INC.
    Lance A. Kadatz
    Vice President and Chief Financial Officer
    (403) 314-1214 EXT 111
    (403) 314-1132 (FAX)
    Email: kadatz@rifco.net
    Website: www.rifco.net