MicroFinancial Incorporated (NYSE:MFI) announced today that it has arranged for a three year, US$30mn senior secured revolving line of credit from CIT Commercial Services, a unit of CIT Group (NYSE:CIT).
This line of credit replaces the previous one year, US$8m credit facility under more favorable terms and conditions including, but not limited to, pricing at prime plus 1.5% or Libor plus 4%. In addition, it retired the existing outstanding debt with the former bank group.
MicroFinancial is a financial intermediary specialising in vendor-based leasing and finance programs for micro-ticket size transactions in the US$500 to US$10,000 range.
Richard Latour, president and chief executive Officer of MicroFinancial stated, "We are delighted to receive this new senior credit facility from CIT, which will provide us with a greater level of flexibility in our product offerings to our customers and vendors."
