Automotive Finco Corp. Announces Amendments to $21 Million Loan and Update Regarding Reinstitution of Cash Dividends
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TORONTO, Nov. 25, 2024 (GLOBE NEWSWIRE) — Automotive Finco Corp. (NEX: AFCC-H) (the “Company”) announces today that the Company has approved for the $21 million loan made by Automotive Finance Limited Partnership to AA Finance Co LP (the “Borrower”) in November 2022 to be amended and restated (the “Restated Promissory Note”). The Restated Promissory Note was amended and restated to, among other things, exclude an IPO conversion option, to include an extension of the loan for a period of six (6) months from the Maturity date of November 18, 2024 with an option (at the request of the Borrower) to extend for up to an additional six (6) months, provided no event of default has occurred and interest (on a go forward basis) to be paid quarterly. Additionally, the Borrower shall be entitled, at any time and from time to time to prepay all or any portion of the outstanding principal amount without notice or penalty. The Restated Promissory Note has a current accrued balance of approximately $25.8 mm and an attractive rate of return of 12% per annum. The Borrower has indicated it intends to make cash interest payments beginning with the upcoming interest payment as noted below.
The Company intends to reinstitute dividends payable quarterly at the same effective rate of $0.205/per annum per common share beginning as soon as possible after the upcoming quarterly interest payment is made in February 2025.
The declaration, amount and payment of future cash dividends are subject to the board of directors’ continuing determination that the payment of dividends is in the best interests of the Company, its shareholders and are in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends.
About Automotive Finco Corp.
Automotive Finco Corp. is a finance company focused exclusively on the auto retail sector. In addition to its interest in Automotive Finance Limited Partnership, the Company may also pursue other direct investments and financing opportunities across the auto retail sector.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please refer to the Company’s website at www.autofincocorp.com or contact Shannon Penney, Chief Financial Officer, at shannon.penney@rogers.com or (905) 619-4996.
