Carfinco lifts credit facility to C$205 million via ATB Financial

By Toni Weeks

San Luis Obispo, Calif., May 16 - Carfinco Financial Group Inc. said it has increased its senior credit facility to C$205 million from C$180 million by adding a new lender, ATB Financial, to its banking syndicate.

The syndicate also includes Bank of America, NA, Bank of Montreal and Wells Fargo Financial Corp.

There are no changes to the facility's financial covenants.

According to a press release, the eligibility requirements of the credit facility have been amended to allow 72-month-term contracts on the higher credit tiers of the company's risk-based pricing programs, up from the previous 60-month terms. Contracts with more than a 60-month term are restricted to a percentage of the company's total finance receivables.

"This change provides the company with the ability to compete more effectively with other lenders already providing 72-month terms to customers with higher credit scores," chief operating officer Troy Graf said in the release.

According to chief executive officer Tracy Graf, the C$25 million increase in the facility will provide the company with flexibility to fund its financing programs and will assist in achieving its targeted organic growth rate of 15% to 20% per year on its finance receivable portfolio.

Carfinco provides consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. The company is based in Edmonton, Alta.

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