Ameritrans Announces Sale of SBA Debentures.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 18, 2003 Ameritrans Capital Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AMTC AMTC Applied Media Technologies Corporation AMTC Aerospace Manufacturing Technology Centre (Canada) AMTC American Modeling and Talent Convention AMTC Army Missile Test Center (White Sands Missile Range, NM) , AMTCP) today announced that on September 15, 2003, its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Elk Associates Funding Corporation, a licensed small business investment company, sold a long-term $5 million debenture to the U.S. Small Business Administration. Proceeds of the debenture were used to pay off $3.7 million of SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government debentures that matured in September 2003 and payment of SBA fees. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $1.15 million were used to reduce bank debt in accordance with the borrowing base agreements with the SBA and its banks. $1.95 million remains under the SBA's $12.0 million, 5-year commitment and the company anticipates applying for an additional loan to draw down the remainder during 2004, depending upon market conditions. The $5 million debenture will bear interest at 0.50% above LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). or 1.682% until March 2004, at which time it will be pooled into the SBA long-term debenture poolings and the fixed rates will then be set for the ten-year term. Gary C. Granoff, president of the company, stated, "This refinancing provides Ameritrans with increased financial flexibility going forward. The current short term rates on the new debenture will significantly reduce Elk's interest payments during the next few quarters. Elk anticipates that the current lower-rate environment will provide us with favorable long-term rates when the debenture is pooled and rates are locked next March." Ameritrans Capital Corporation is a specialty finance company engaged in making loans to and investments in small businesses. Ameritrans' wholly-owned subsidiary, Elk Associates Funding Corporation, has been licensed by the United States Small Business Administration (SBA) as a Small Business Investment Company since 1980. The company maintains its offices at 747 Third Avenue, 4th Floor, New York, New York 10017. This announcement contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presently anticipated or projected. Ameritrans Capital Corporation cautions investors not to place undue reliance on forward-looking statements, which speak only as to management's expectations on this date. |
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