Axis Auto Finance Inc. announced the closing of a new $40 million senior secured debt facility with Royal Capital Management Corp.

The credit cacility has a 2 year term and bears interest at prime rate plus 7.5%. Amounts drawn under the credit facility will be used to refinance the company's existing debt and to originate, acquire and administer auto loans in the ordinary course of business.

The terms of the new credit facility represent a decrease of over 30% in interest expense compared to the previous senior debt and the size of the debt facility has doubled from $20 to $40 million. The indebtedness of the company to Traverse Limited Partnership, in the amount of $14 million, has been fully repaid.

"The establishment of an institutional funding conduit was a strategic priority for us and we are very pleased to work with RoyCap as a key partner going forward," commented Ilja Troitschanski, CEO of Axis. "The significant savings on interest will bolster our bottom line and the size of the new facility gives us ample runway to continue growing our business," he added.

The company has also engaged the services of FronTier Merchant Capital Group for Investor Relations Services. FronTier is an Investor Relations group based in Toronto. FronTier will assist the company by increasing investor awareness utilizing a number of financial communications and media initiatives and through introductions to institutional and retail broker and investor groups.
FronTier has been retained for an initial term of 6 months at $7,000 per month and together with its principal and a related investment holding company currently owns 35,500 shares of Axis.