Business & Finance
Business and Finance
Business and Finance
Thu, April 9, 2009
Wed, April 8, 2009 Sparta Commercial Services, Inc.: Sparta Attracts More Powersports Dealers as Other Lenders Are Scaling Back
NEW YORK, NY--(Marketwire - April 8, 2009) - Sparta Commercial Services, Inc. (
The company reported that Sparta signed up 500 new dealers in 2008, which is a significant increase over the 300 new dealers that signed up in 2007. Despite the fact that the powersports riding season is just beginning, there are already 100 new dealers that signed up during the first quarter of 2009 and the total number of dealers in Sparta's nationwide network is currently approaching 2,500.
Commenting on the announcement, Anthony Havens, Sparta's CEO, said, "For nearly a year, a number of our major competitors have been gradually scaling back their lending activities, with some leaving the indirect financing sector entirely. This has resulted in more dealers turning to Sparta as their preferred source for indirect consumer financing. We'll soon be launching our updated consumer financing and leasing programs that will provide dealers with enhanced financing and leasing choices for their customers. These updated and revised programs will provide even more rapid responses to credit applications and easier contracting through iPLUS®, our online credit decisioning software and portfolio management system. We are confident that these enhancements will be very well received by our growing dealer network."
In addition to Sparta's consumer financing products, the company also offers a Municipal Leasing Program for local, county, and state jurisdictions throughout the country that utilize police motorcycles and other municipal equipment for law enforcement or civic-use activities. Havens added a comment on this program as well, saying, "Given the serious economic issues facing so many governmental agencies, their traditional method of purchasing items such as motorcycles seems to be yielding to the much more economical practice of leasing these vehicles, which explains the influx of municipal leasing inquiries we are experiencing. Of the jurisdictions we have contracted, many of them either look to extend their current leases or trade up for leases on current model years, suggesting that once a municipality has been introduced to our lease program, they understand its fundamental value. We fully expect to see the need for and interest in this particular product line to continue in the coming months. This activity is further support for our continued optimism."
Havens then referred to the recent agreement between Autobahn Funding Company LLC as lender, and DZ Bank AG Deutsche Zentral-Genossenchaftsbank New York Branch ("DZ Bank") as Administrative Agent and Liquidity Agent and Sparta's wholly owned subsidiary, Sparta Funding, LLC, which provides a new, one year, extendable, $25 million committed revolving credit facility, which will enable Sparta to expand its dealer network, increase the variety of eligible asset classes in the powersports market, and enlarge its market share in the powersports sector. The agreement, which requires Sparta to meet certain financial covenants prior to initial drawdown, may be increased subject to portfolio performance. Havens said, "The new credit facility with DZ Bank shows that even at a time when other lenders are scaling back, a financial services company like Sparta, with a highly focused and effective business model, can generate the kind of institutional confidence and support that this transaction demonstrates."
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are valid only as of today and we disclaim any obligation to update this information. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, obtaining, satisfying terms of, and amount of credit lines, competition, financing and commercial agreements and strategic alliances, seasonality, potential fluctuations in operating results and rate of growth, management of potential growth, system interruption, consumer and industry trends, limited operating history, and government regulation. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
