Science & Technology
Science and Technology
Science and Technology
Mon, February 23, 2009 CarBiz Inc.: CarBiz Obtains New Credit Facility
SARASOTA, FLORIDA--(Marketwire - Feb. 23, 2009) - CarBiz Inc. (OTCBB:CBZFF) announced that it has successfully restructured its debt with a credit facility from Dealer Services Corporation (DSC). DSC purchased CarBiz's prior credit facility from SWC Services, LLC, which is in bankruptcy in Illinois. In connection with the new credit facility, DSC has forgiven approximately $30 million of the debt owed to SWC.
CarBiz became the fourth largest buy here-pay here business in the US following two major acquisitions in 2007. The acquisitions resulted in CarBiz owning and operating 26 buy here-pay here dealerships in nine states including Florida, Illinois, Indiana, Nebraska, Iowa, Kentucky, Oklahoma, Ohio and Texas.
These acquisitions were funded through a credit facility from SWC, which filed for bankruptcy on October 20, 2008.
Chief Executive Officer of CarBiz, Carl Ritter commented "Unfortunate circumstances have made it impossible for our prior lender to continue its participation in our growth. With the help of DSC CarBiz has been able to overcome this setback and significantly improve its balance sheet. We believe that we are well positioned for an exciting 2009."
Chief Executive Officer of Dealer Services Corporation, John Fuller said "DSC is excited about working with and funding CarBiz. Their long established training division will be very beneficial to the launch of our Lease here-Pay here product and provide an excellent testing ground to develop the product for future expansion. I have done business with Carl Ritter and his team in the past and I'm delighted to have the opportunity to work with them again."
Additional details concerning this transaction are included in two Forms 8-K filed with the Securities and Exchange Commission, dated January 23, 2009 and February 4, 2009.
About CarBiz Inc.
Headquartered in Sarasota, Florida, USA, CarBiz, Inc. owns and operates the nation's fourth-largest chain of "buy here-pay here" and "lease here-pay here" automobile dealerships through its CarBiz Auto Credit division. CarBiz Consulting is a leading provider of training, collections and other vital services, including Performance Groups, to help auto dealers throughout the U.S. maximize profitability. CarBiz stock is traded on the U.S. OTCBB under the symbol CBZFF.OB.
For more information about CarBiz and its services, visit [ www.CarBiz.com ].
About Dealer Services Corporation
Dealer Services Corporation is dedicated to providing quality products and services. Our commitment to serve our customers is so great that SERVICE is our middle name.
We have combined decades of management expertise with state of the art technology to provide the best lending experience in the industry. Dealers are saying that the DSC floorplan product is competitive, flexible, and satisfies their financing needs.
It's time to... DISCOVER DSC!
Forward-Looking Statements
All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future growth plans and objectives of CarBiz. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any of our future results or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to the following: (i) whether we are successful in implementing our business strategy; (ii) our ability to increase revenues in the future and to continue as a going concern; (iii) our ability to obtain additional financing on terms favorable to us, if at all, if our operating revenues fail to increase; (iv) our ability to attract and retain key personnel; (v) the impact on the market price of our common shares of the concentration of common share ownership by our directors, officers and greater than 5% shareholders, which may delay, deter or prevent actions that would result in a change of control; (vi) the significant fluctuation of the market price of our common shares; (vii) costly difficulties we may face in the assimilation of the operations, technologies and products of companies that we may acquire in the future; (viii) the adequacy of our insurance coverage to cover all losses or liabilities that may be incurred in our operations; (ix) our dividend policy; (x) the impact on our financial position, liquidity and results of operations if we underestimate the default risk of sub-prime borrowers; (xi) general economic conditions; (xii) general competition; (xiii) our ability to comply with federal and state government regulations; (xiv) potential infringement by us of third parties' proprietary rights; (xv) defects in our products; (xvi) our compliance with privacy laws; (xvii) our ability to obtain adequate remedies in the event that our intellectual property rights are violated; (xviii) our ability to develop and market on a timely and cost-effective basis new products that meet changing market conditions, and (xix) the risk factors identified in our most recent Annual Report on Form 10-KSB, including factors identified under the headings "Description of Business," "Risk Factors" and "Management's Discussion and Analysis or Plan of Operation."
Although we believe that expectations reflected in these forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or other future events. Moreover, neither we nor anyone else assumes responsibility for the accuracy and completeness of these forward-looking statements. We are under no duty to update any of these forward-looking statements. You should not place undue reliance on these forward-looking statements.
