May 29 (Reuters) - Automotive Finco Corp AFCC.V :
* Automotive Finco Corp. Announces significant transaction, dividend increase and $40 million financing
* Increase in its annual dividend to $0.205 per common share payable monthly
* Increase in its annual dividend represents an increase of approximately 22% above its current dividend per share
* Through unit intends to provide new debt financing to three affiliates of AA Finance Co LP in aggregate amount of $43 million
* Investments to each have 25-year term, bear interest at 10.5%, and provide partnership with annual interest revenue of $4.5 million
* In order to finance investments has entered into an agreement with a syndicate of underwriters
* Underwriters agreed to purchase, on a bought deal basis, 3.7 million common shares at $2.70 per share Source text for Eikon: ID:nCNWPBD7ka Further company coverage: AFCC.V