Printer Friendly

American Business Financial Services, Inc. Extends Investment Note Exchange Offer through February 6, 2004.

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--Jan. 2, 2004

American Business Financial Services, Inc. (NASDAQ:ABFI) announced today that it has extended its exchange offer through February 6, 2004, due to the response to the exchange offer and the processing volume experienced during the holiday season. During the initial phase of the exchange offer, which ended December 31, 2003, $74.6 million of the investment notes were exchanged for $35.3 million of senior collateralized subordinated notes and 39.3 million shares of Series A convertible preferred stock.

The exchange offer as extended, gives eligible noteholders two options. The first option allows eligible noteholders to exchange the principal amount of their investment note in increments of $1,000 (unless waived by the Company) for equal amounts of:

-- a senior collateralized note, with the same maturity date and

an interest rate of 10 basis points (.10%) higher than their

existing note; and

-- shares of Series A preferred stock, with a liquidation value

equal to $1.00 per share (plus any unpaid dividends). The

Series A preferred stock will be convertible into shares of

the Company's common stock commencing 24 months after the

issuance date, at an exchange rate of 20% above the

liquidation value, and at an exchange rate of 30% above the

liquidation value commencing 36 months after the issuance

date.

The second option allows eligible noteholders to exchange 100% of the investment notes principal amount in increments of $1,000 (unless waived by the Company) for shares of Series A preferred stock.

American Business Financial Services, Inc. is a diversified financial services company operating predominantly in the eastern and central portions of the United States. The Company primarily originates, sells and services home equity and, subject to market conditions in the secondary loan market, business purpose loans through a combination of channels, including a national processing center located at its centralized operating office in Philadelphia, Pennsylvania, and a small processing center in Roseland, New Jersey. The Company also processes and purchases home equity loans from other financial institutions through its Bank Alliance Services program.

For further information, contact Stephen M. Giroux, Executive Vice President and General Counsel, 215-940-4537, or Keith Bratz, VP--Corporate Communications, 215-940-4525.

Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements under federal securities laws. There are many important factors that could cause American Business Financial Services, Inc. and its subsidiaries' actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, including interest rate risk, future residential real estate values, regulatory changes (legislative or otherwise) affecting the mortgage lending and real estate industries, regulatory investigations of lending practices, lending to credit-impaired borrowers, competition, demand for the Company's products, relationships with brokers, ability to obtain financing, loan prepayment rates, delinquency and default rates, access to securitization markets, changes in factors influencing or interruptions in securitization and whole loan sale markets, ability to successfully implement changes in business strategy, amount of debt outstanding, restrictive covenants in debt instruments and other risks identified in American Business Financial Services, Inc.'s Securities and Exchange Commission filings.
COPYRIGHT 2004 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1USA
Date:Jan 2, 2004
Words:527
Previous Article:Dell Offers Zero-Percent Financing for Consumers; Twelve-Month Offer a First for Dell.
Next Article:Crescent Announces Vice President, Leasing in Dallas.
Topics:


Related Articles
Fannie Mae Prices Callable Benchmark Notes--R--.
Fannie Mae Announces New Issue Callable Benchmark Notes--R--.
Fannie Mae Announces Reopening Callable Benchmark Notes--R--.
Fannie Mae Prices Reopening Callable Benchmark Notes--R--.
American Business Financial Services, Inc. Announces Results of Investment Note Exchange Offer.
American Business Financial Services, Inc. Extends Investment Note Exchange Offer through July 31, 2004.
American Business Financial Services, Inc. Announces Results of Investment Note Exchange Offer Through June 30, 2004.
American Business Financial Services, Inc. Extends Investment Note Exchange Offer Through August 23, 2004.
American Business Financial Services, Inc. Announces Results of Investment Note Exchange Offer.
Paragon halts $100m offering.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters