- Solution Financial (SFI) announced the close of a $15 million credit facility with ATB Financial
- The $15 million secured line of credit facility bears interest at prime plus 1.5 per cent per annum and will replace Solution Financials’ existing credit facility
- Solution Financial specializes in sourcing and leasing luxury and ultra luxury vehicles, yachts, and other limited-edition assets
- Solution Financial Inc. (SFI) is unchanged on the day, trading at C$0.30 per share at 2:30 pm ET
Solution Financial (SFI) has closed a $15 million credit facility with ATB Financial (ATB), replacing the existing $12.5 million facility.
Highlights:
- Additional $2.5 million of available credit
- Structured to support future growth financing arrangements
- Maintains the company’s non-dilutive and low interest capital
Bryan Pang, Solution Financials Chief Executive Officer, commented on the financing.
“We are very pleased to finalize this facility with ATB. Our Chairman, Randy Smyth and the whole Geminus team worked diligently with our internal team over the last nine months to enhance our leasing infrastructure and introduce invaluable long term financing partners such as ATB. We’re excited to hit this major milestone and continue to expand our lease financing options to luxury automobile and marine dealerships throughout Alberta, British Columbia, and Ontario. Many of our dealership partners were impacted by lower new vehicle sales volumes due to the COVID semiconductor challenges and the new Federal luxury sales taxes, only to now be seeing higher borrowing costs for their customers and some of the most restrictive lending requirements imposed by Canadian banks targeting luxury auto and new immigrant borrowers that we’ve ever seen.
We’re committed to supporting these existing and future dealership partners and their clientele with prudent financing options and a welcoming and friendly approach that is the backbone of our entire organization and the foundation of our successes to date.”
The $15 million secured line of credit facility bears interest at prime plus 1.5 per cent per annum and will all be used initially to replace Solution Financials’ existing credit facility. The company’s gross lease portfolio recently surpassed $29 million, generating annualized recurring interest and leasing revenues of $6.6 million.
Solution Financial paid a fee of 1.25 per cent of the credit facility to Geminus, a related party controlled by a director of Solution Financial.
Solution Financial specializes in sourcing and leasing luxury and ultra-luxury vehicles, yachts, and other limited-edition assets that tend to hold their value over time.
Solution Financial Inc. (SFI) is unchanged on the day, trading at C$0.30 per share at 2:30 pm ET.