Asta Funding (ASFI) Amends Revolving Credit Line
ASFI Hot Sheet
Dividend Yield: 1%
Asta Funding, Inc. (Nasdaq: ASFI) has secured an amendment to its revolving credit agreement that effective today, extends the facility until December 31, 2009. The amendment is provided by a consortium of lenders for which IDB Bank serves as agent. The initial level of the revolving credit agreement is $40 million as of July 10, 2009 with a minimum interest rate of 5.5% per annum.
Under terms of this amendment to the agreement, the revolving credit facility will liquidate over the remaining six months of the calendar year with funding capacity limited to the Company's current commitments through the end of the calendar year. The Company continues to make steady progress in debt reduction, reducing the revolving line of credit over the last ten months from $84.9 million as of September 30, 2008 to $31.9 million at July 10, 2009. The Company will file a Current Report on Form 8-K with the U.S. Securities and Exchange Commission in the next few days regarding this amendment to the revolving credit agreement.
The Company's total senior debt level is approximately $139.5 million as of July 10, 2009, including $31.9 million under the revolving line of credit, and $107.6 million due to the Bank of Montreal under the borrowing facility for its Palisades XVI subsidiary. This represents a reduction of 35% in total senior debt from approximately $213.5 million as of September 30, 2008.
Asta Funding, Inc., is a consumer receivable asset management company that specializes in the purchase, management and liquidation of performing and non-performing consumer receivables.[SM]
Under terms of this amendment to the agreement, the revolving credit facility will liquidate over the remaining six months of the calendar year with funding capacity limited to the Company's current commitments through the end of the calendar year. The Company continues to make steady progress in debt reduction, reducing the revolving line of credit over the last ten months from $84.9 million as of September 30, 2008 to $31.9 million at July 10, 2009. The Company will file a Current Report on Form 8-K with the U.S. Securities and Exchange Commission in the next few days regarding this amendment to the revolving credit agreement.
The Company's total senior debt level is approximately $139.5 million as of July 10, 2009, including $31.9 million under the revolving line of credit, and $107.6 million due to the Bank of Montreal under the borrowing facility for its Palisades XVI subsidiary. This represents a reduction of 35% in total senior debt from approximately $213.5 million as of September 30, 2008.
Asta Funding, Inc., is a consumer receivable asset management company that specializes in the purchase, management and liquidation of performing and non-performing consumer receivables.[SM]
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