Auto Service World
News   May 1, 2007   by Auto Service World

Rifco Negotiates Letter of Credit


Financial services company Rifco Inc. has negotiated a $2.0 million letter of credit with BMO Bank of Montreal.
The letter of credit forms part of Rifcos existing senior debt facility.
Delivery of the letter of credit to the securitization trust administrator has resulted in a $2.0 million cash release from the retained interest cash reserve.
The released cash has been used to pay down Rifcos senior debt borrowing. Rifco initiated this action in order to achieve decreased interest expenses on an ongoing basis.
This change did not have a negative effect on Rifcos financial leverage or flexibility.


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