Automotive Finco Corp. Announces Annual Cash Dividends
Not for distribution to United States newswire services or for dissemination in the United States. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
TORONTO, June 19, 2023 (GLOBE NEWSWIRE) -- Automotive Finco Corp. (NEX: AFCC-H) (the “Company”) announces a change to the frequency of its dividend distributions from semi-annual to annual. The Company intends to pay dividends at the end of December 2023 at the same effective rate of $0.205/annum per common share.
On March 3, 2023, the Company announced a change to the frequency of its dividend distributions from monthly to semi-annual to align with expected cash flow from its current loan investment of $21 mm, announced on November 18, 2022. Pursuant to the loan agreement, the borrower elected to pay interest in kind (“PIK Interest”) with respect to the first two quarterly interest payments. Accordingly, all amounts of accrued PIK Interest have been added to the principal amount of the loan at each interest payment date and bear interest until repaid.
The declaration, amount and payment of future cash dividends are subject to the board of directors’ continuing determination that the payment of dividends are 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.
