MicroFinancial Incorporated Announces Increase in Bank Credit Facility
BURLINGTON, Mass., Dec. 26, 2012 (GLOBE NEWSWIRE) -- MicroFinancial Incorporated (Nasdaq: MFI) a financial intermediary specializing in vendor-based leasing and finance programs for microticket transactions, announced that its operating subsidiary, TimePayment Corp., has increased its revolving line of credit from $100 million to $150 million with a six member bank syndicate led by Sovereign Bank, a subsidiary of Santander Holdings USA, Inc. and Banco Santander, S.A. (NYSE: SAN).
The credit agreement allows the Company to borrow up to $150 million against eligible lease receivables subject to a borrowing base calculation. The interest rate under the amended agreement continues to provide for either a Prime Rate based or a Libor Rate based borrowing at the Company's option and the maturity date of the amended facility was extended to December 21, 2016.
Richard Latour, President and Chief Executive Officer said, "Our ability to increase our line of credit in this challenging economic environment demonstrates a continued confidence in our Company. We are pleased to have increased our credit facility which, when combined with our strong cash flow from operations, will allow us to continue to provide our customers with the financial services they need to grow their business."
MicroFinancial Inc. (Nasdaq: MFI), is a financial intermediary specializing in microticket leasing and financing. MicroFinancial has been operating since 1986, and is headquartered in Burlington, Massachusetts.
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About Sovereign Bank, N.A., Santander Holdings USA, Inc. and Banco Santander, S.A.
Sovereign Bank is among the top 25 banks in the United States with principal presence in Connecticut, Delaware, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island. Sovereign has 721 branches, 2,195 ATMs and over 8,800 team members. Sovereign Bank's principal regulator is the Office of the Comptroller of the Currency (OCC). Sovereign Bank is a member of the Federal Reserve Bank System and the Federal Deposit Insurance Corporation ("FDIC"). For more information on Sovereign Bank, visit http://www.sovereignbank.com or call 877-SOV-BANK.
Santander Holdings USA, Inc. is a wholly owned subsidiary of Banco Santander, S.A., and parent company of Sovereign Bank, N.A.. Banco Santander is a retail and commercial global bank, with a presence in 10 main markets: US, Germany, UK, Poland, Brazil, Mexico, Chile, Argentina, Spain, and Portugal. Founded in 1857, Santander has more than 102 million customers, approximately 14,500 branches – more than any other international bank – and 188,000 employees. Santander was recently recognized as the Best Global Bank in 2012 by Euromoney magazine. For more information on Santander, visit http://www.santander.com.
Statements in this release that are not historical facts, including statements about future dividends, growth plans, or future changes to the line of credit are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition, words such as "believes," "anticipates," "expects," "views," "will" and similar expressions are intended to identify forward-looking statements. We caution that a number of important factors could cause our actual results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. Readers should not place undue reliance on forward-looking statements, which reflect our views only as of the date hereof. We undertake no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. We cannot assure that we will be able to anticipate or respond timely to changes which could adversely affect our operating results. Results of operations in any past period should not be considered indicative of results to be expected in future periods. Fluctuations in operating results or other factors may result in fluctuations in the price of our common stock. For a more complete description of the prominent risks and uncertainties inherent in our business, see the risk factors described in documents that we file from time to time with the Securities and Exchange Commission.