Red Deer, Alberta, November 14, 2018: Rifco Inc. (TSXV: RFC) (“Rifco” or the “Company”) the
largest publicly-traded alternative auto finance company in Canada, announced today that its wholly
owned subsidiary, Rifco National Auto Finance (“Rifco”), has extended its bank line with the Wells Fargo
lead banking syndicate.
The Company has been receiving funding from this banking syndicate since November 2012.
The facility will be extended for an additional year with a maturity date of Feb 17, 2020. The facility
size has been decreased from $100M to $65M to correspond with current utilization and to manage the
total cost of borrowing and associated stand-by fees. The facility contains an accordion feature allowing
the facility to be increased up to $100M should future originations exceed the revised capacity. The
terms and conditions of the renewal are broadly comparable to those currently being received.
The facility has a range of financial covenants. The EBITDA covenant has been out of compliance since
the portfolio acquisition announced on June 4, 2018 due to the impact of forward-looking provisions required
by International Financial Reporting Standard 9 – Financial Instruments, which became effective
in the current fiscal year. The facility renewal adjusts the time frame of the EBITDA covenant to exclude
the period of the portfolio purchase. As of the renewal date, Rifco is in compliance with all covenants.
Rifco has six funding facilities that total approximately $270M in funding capacity with over $67M in
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. is focused on being the best alternative auto finance company through its wholly owned
subsidiary Rifco National Auto Finance Corporation. Our mission is to help deserving Canadians own
automobiles. Rifco is Canada’s largest publicly traded alternative auto finance company.
Rifco seeks to create sustainable long-term competitive advantages through personalized partnerships
with dealers, innovative products, the use of industry-leading data and analytics, and leading collections
practices. Rifco’s corporate culture fosters employees that are highly engaged, innovative, and
Rifco is committed to creating value for all stakeholders through profitable growth and predictable credit
performance, while pursuing its long-term vision of $500M in annual loan Originations.
The common shares of Rifco Inc. are traded on the TSX Venture Exchange under the symbol “RFC”.
There are 21.60 million shares outstanding and 23.46 million (fully diluted) shares.
Warren Van Orman
Vice President and Chief Financial Officer
Telephone: 1-403-314-1288 Ext 7007