Canada NewsWire
MISSISSAUGA, ON, March 26, 2019
MISSISSAUGA, ON, March 26, 2019 /CNW/ - Axis Auto Finance Inc. ("Axis" or the "Company"), (TSXV: AXIS) Canada's fastest growing publicly-traded alternative auto finance company, today announced the closing of its new $100 million senior secured revolving debt facility ("Credit Facility") with a syndicate led by a Canadian Schedule 1 Bank ("Bank") and including a large Canadian insurance company ("Insurance Co").
HIGHLIGHTS
"This is a tremendous milestone for Axis and another key accomplishment in the roll-out of our strategic plan," commented Todd Hudson, CEO of Axis. "The interest cost savings will immediately bolster our bottom line and the size of the new facility gives us ample runway to continue growing the portfolio," he added.
The Credit Facility has a 4 year term and bears interest at Prime Rate plus 2.25%. It replaces the existing senior debt facility priced at Prime Rate plus 7.5%. The 525 bps reduction in borrowing costs would result in over $5 million in interest cost savings annually on a fully drawn facility.
The Bank and Insurance Co, who have a wealth of experience in non-prime auto finance, have committed $80 million of the aggregate principal amount of the Credit Facility. The balance of $20 million is currently uncommitted with several institutions having expressed interest in participating in the banking syndicate.
Axis will not incur any prepayment or early termination fees in connection with the refinancing of the legacy senior secured debt facility.
About Axis Auto Finance
Axis Auto Finance is a leading Canadian provider of alternative used vehicle financing options servicing roughly 30% of Canadians (Source: Equifax) that have credit scores in the non-prime range. 100% of all Axis auto loans report to the credit bureau, resulting in a significant improvement of the credit scores for the overwhelming majority of clients. These clients use Axis as a stepping stone in their credit rebuilding journey and we are proud to be improving the lives of these Canadians. Supported by state-of-the-art, in-house developed risk analytics, Axis continues to be Canada's fastest-growing publically traded auto-financing company.
Further information on the Company can be found at investors.axisautofinance.ca
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Axis Auto Finance Inc.
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