RIFCO National Auto Finance Enters Into a $70 Million Secured Credit Facility with Wells Fargo

On November 2, 2012, RIFCO National Auto Finance, a subsidiary of RIFCO Inc. (TSXV: RFC), entered into a $70 million secured credit facility with Wells Fargo.

RIFCO is one of Canada’s leading auto-finance companies. With this facility, RIFCO expects to receive the following benefits:

• A reduction in its average interest expense ratio.
•  A reduction in current taxes payable.
• Improved cash flow as prepaid cash taxes are reduced.
• A reduction in funding risk as provided by a multi-year facility.
• Increased permanent funding opportunities based on accumulating larger amounts of finance receivables before securitization. Opportunities could include much larger securitization tranches of finance receivables, and potentially improved securitization rates due to scale.
• Increased overall funding capacity to support its finance receivable growth.

RIFCO was represented by Davis LLP with a team that included Doug Shields, Trevor Wong-Chor, John Munnis, Eric Belli-Bivar, Andrew Lloyd and Prasad Taksal.