CARFINCO FINANCIAL GROUP INC For Immediate Release - January 9, 2015
CARFINCO FINANCIAL GROUP INC. TSX: CFN Carfinco Declares 2.5 Cent Cash Dividend for January 2015
EDMONTON, ALBERTA /CNW/ - Carfinco Financial Group Inc. ("Carfinco" or the "Company") announces that a monthly cash dividend of 2.5 cents per share has been declared for January 2015. The payable date is January 30, 2015, the record date is January 20, 2015 and the ex-distribution date is January 16, 2015.
Carfinco has seen an increase in both delinquencies and losses on the finance receivable portfolio in recent months. Carfinco has been further impacted by expenses related to the proposed Plan of Arrangement transaction that was approved by shareholders on November 7, 2014. In light of these circumstances and to permit Carfinco to comply now, and to improve its ability to comply in the future, with the financial covenants relating to dividends set out in its existing credit facility with the lending syndicate led by Bank of America and the covenants under the agreement with respect to the Plan of Arrangement, the board of directors determined that it was in the best interests of Carfinco to declare a
2.5 cent per share dividend for the month of January 2015.
Carfinco focuses on providing indirect consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. A network of select independent and franchise dealerships offer Carfinco's payment plans to their customers who must, along with the vehicle, meet Carfinco's underwriting guidelines. The shares of Carfinco trade on The Toronto Stock Exchange under the symbol
"CFN".
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the Company's on-going compliance with the terms of the Arrangement Agreement with Banco Santander, S.A., its business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.
For further information, please contact: Mr. Tracy A. Graf
CEO & Director of Carfinco Financial Group Inc.
Telephone: 1-888-486-4356
Facsimile: 1-888-486-7456
E-mail: tracy.graf@carfinco.com
Web site: www.carfinco.com
Carfinco Financial Group Inc.
300, 4245 - 97 Street, Edmonton, Alberta, T6E 5Y7
Phone: (780) 413-7549 • Toll Free: 1-888-486-4356
Fax: (780) 450-1134 • Toll Free: 1-888-486-7456
E-mail: carfinco@carfinco.com • Web site: www.carfinco.com
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