Chesswood Group Ltd T.CHW

RIFCO Acquisition Closes Friday

[419lornestreet9]

Still nothing from Chesswood. I hope most shareholders took cash.

Positives for the transaction:
+ Used car prices are much higher (helps originations and credit)
+ Oil prices much higher (+100 in CAD) - should help Alberta
+ Chesswood much lower funding costs. Could put a good chunk of RIFCO receivables on the corporate revolver facility and save about 70bps.

Chesswood should do some more consolidation in the industry and then sell the entity to a larger buyer.

[Nashville35]

good points. thanks.   although with this new chw ceo, and how good they seem to be managing balance sheet and broadening funding sources (still surprised that chw could get such a large abs done at less than 2%), think chw see THEMSELVES as the "larger buyer" of smaller firms at some point in the future.  seems like they just getting started.  balancing leverage

[419lornestreet9]

that is also possible. so we win either way. i wonder how long the CEO remains CEO and CHW and CIO at Waypoint Partners. Must be hard!