Carfinco Announces a Combined Monthly and Special Distribution of 33 Cents
per Unit for December 2010
TSX: CFN.UN
EDMONTON, Dec. 7 /CNW/ - Carfinco Income Fund ("Carfinco" or the "Fund") today announced a monthly cash distribution of 2 cents per unit for December 2010. Carfinco also announced, a cash distribution of 12 cents per unit and a unit distribution valued at 19 cents per unit for a total special distribution of 31 cents per unit. This brings Carfinco's total distributions to 78.5 cents per unit for 2010, of which 59.5 cents was distributed in cash.
The cash and unit distributions have a payable date of December 31, 2010, to unitholders of record on December 20, 2010. The ex-distribution date is December 16, 2010.
"2010 has been a tremendous year and we are pleased to share our success with our unitholders," stated Tracy Graf, President and CEO of the Fund. "The operational goals for 2011 will remain similar to those of 2010, targeting a 20% increase in the finance receivables while maintaining delinquencies at acceptably low levels."
Subsequent to January 1, 2011, Carfinco will remain an income fund and, as previously disclosed, intends to provide monthly cash distributions on an after-tax basis. After January 1, 2011, the Fund's unitholders will benefit from a more favourable tax treatment on distributions, as taxes on distributions will be treated the same as taxes on dividends from a corporation. The Fund has until January 1, 2013 to convert to a corporation with no taxable consequences to its unitholders. The Board of Trustees will make a recommendation on conversion, taking into consideration the best interest of the unitholders.
With respect to the unit distribution, under the Deed of Trust that governs the Fund, the number of units allotted to unitholders is determined by calculating the weighted average closing trading price of the units during the ten business days immediately preceding the record date of December 20, 2010. As this calculation cannot be completed until after the close of trading on December 17, 2010, the Fund will issue a news release on the record date of December 20, 2010 to provide details of the unit distribution.
The cash and units to be distributed are based on an estimate by the Board of Trustees of the year-end taxable income of the Fund. The unit distribution is subject to TSX acceptance.
About Carfinco Income Fund
Carfinco focuses on providing consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. A network of select independent and franchise dealerships offer Carfinco's payment plan to their customers who must, along with the vehicle, meet Carfinco's underwriting guidelines. The units of the Fund trade on The Toronto Stock Exchange under the symbol "CFN.UN".
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Fund. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.
For further information:
Mr. Tracy A. Graf | The Howard Group Inc. |
CEO & Trustee of Carfinco Income Fund | Jeff Walker / Dave Burwell |
Telephone: 1-888-486-4356 | Investor Relations |
Facsimile: 1-888-486-7456 | Telephone: 1-888-221-0915 |
E-mail: [email protected] | E-mail: [email protected] |
Web site: www.carfinco.com | Web site: www.howardgroupinc.com |
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