Chesswood Group Limited and Rifco Inc., a Canadian alternative auto finance company, announced the successful completion of Chesswood's strategic acquisition of Rifco pursuant to the previously announced statutory plan of Arrangement under the Business Corporations Act (Alberta).
The Arrangement was approved by 98.90 percent of the votes cast by Rifco shareholders at the special meeting of Rifco shareholders held on Dec. 17, 2021. After obtaining the requisite Rifco shareholder approval, the Court of Queen's Bench of Alberta approved the Arrangement on Jan. 10.
"We are excited to work with Rifco's management and staff to strengthen Rifco's market position by leveraging off of Chesswood's strengths and are so glad to have them join the Chesswood family," said Ryan Marr, Chesswood's President and CEO.
Corporate Revolver Renewal
Chesswood also announced it has completed the renewal of its corporate revolver. This facility is provided by a syndicate of banks, including leading Canadian and U.S. banks active in our industry, and is co-led by RBC Capital Markets and TD Securities.
"Our revolving credit facility allows us tremendous opportunity to fund our current and future growth. We are excited to announce we are expanding the base commitment to US$300 million and the accordion feature to US$100 million, for a total potential facility amount of US$400 million," said Marr. "This renewal provides greater financial and operational flexibility for the company as it pursues its strategic plan, including a welcomed reduction in our cost of funds. This renewal reflects the strong commitment Chesswood continues to receive from its lenders. We're very grateful for the support of our lenders in Canada and the United States."
The term of the senior revolving facility now extends to January 2025 and provides the company with a strong capital base from which to support future growth.
Through two wholly owned subsidiaries in the United States and three subsidiaries in Canada, Chesswood Group Limited is North America's only publicly traded commercial equipment finance company focused on small and medium-sized businesses. Colorado-based Pawnee Leasing Corporation, founded in 1982, finances a highly diversified portfolio of commercial equipment leases and loans through relationships with over 600 brokers in the United States. Tandem Finance Inc. provides financing in the U.S. through the equipment vendor channel. In Canada, Blue Chip Leasing Corporation has been originating and servicing commercial equipment leases and loans since 1996, and today operates through a nationwide network of more than 50 brokers. Vault Credit Corporation specializes in equipment leases and commercial loans across Canada.