ContiFinancial Corporation Enters Into a Non-Binding Letter of Intent to Acquire a Majority Interest in Keystone.NEW YORK--(BUSINESS WIRE)--February 12, 1998--ContiFinancial Corporation (NYSE NYSE See: New York Stock Exchange :CFN CFN Center for Functional Nanomaterials CFN Companhia Ferroviaria do Nordeste (Brazil) CFN Commercial Fueling Network CFN Conselho Federal de Nutricionistas (Brazil) ) has announced that it has entered into a non-binding letter of intent to acquire Keystone Capital Group, Inc. and Keystone Mortgage Investments, Inc. (together "Keystone"). The proposed transaction, if completed, would result in ContiFinancial's ownership of a 75% interest in a new company, which will combine the management and resources of the acquired companies. The transaction is expected to close in the second quarter of 1998. Headquartered in Phoenix, Arizona Phoenix /ˈfiːˌnɪks/ (English: Phoenix, Navajo: Hoozdo, lit. "the place is hot", Western Apache: Fiinigis) is the capital and the most populous city of the U.S. and Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. , Keystone is a privately-held originator and servicer of commercial mortgage loans, primarily for 37 life insurance companies and select finance company and Wall Street conduits. Keystone employs 40 people in five locations: Phoenix, Tucson, Dallas, Austin and Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. . Keystone will continue to be managed by Jeffrey Covill and William Ross William Ross may refer to:
During 1997, Keystone originated over $800 million of loans and, as of December 31, 1997, Keystone serviced a loan portfolio of approximately $1.8 billion. The serviced loan portfolio consists of approximately 675 loans with an average principal balance of approximately $2.75 million. ContiFinancial, through its ContiMAP(R) commercial real estate loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. conduit, continued its expansion into the quarter ended December 31, 1997, during which $761 million in loans were originated. Approximately $1.5 billion of loans were originated during 1997. Steven B. Wendel, the head of ContiFinancial's commercial real estate mortgage lending group, said, "The Keystone acquisition represents an alliance with a strong management team, as well as a diversification from reliance on the CMBS CMBS See: Commercial Mortgage Backed Securities marketplace. We believe that there are significant growth opportunities available through the alignment of Keystone's management team with the capital markets expertise and financial resources of ContiFinancial." Covill and Ross added, "The combined Keystone/ContiFinancial organization allows us to deliver a greater variety of financial alternatives to our clients. In addition, we will have the capital base for strategic expansion of the Keystone origination platform." ContiFinancial Corporation is a consumer and commercial finance company with headquarters in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, securitizer, and servicer of home equity loans made to borrowers whose needs may not be met by traditional financial institutions. In addition, through ContiTrade Services L.L.C., the Company provides financing and securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. services and, through ContiFinancial Services Corporation, bond placement services, to originators of a broad range of loans, leases and receivables, including loans for a variety of commercial real estate property types; home equity loans; home improvement loans; prime, sub-prime and non-prime auto loans; franchisee loans; time-share loans and equipment leases. -0- Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. under the federal securities laws. There are many important factors that could cause ContiFinancial Corporation's actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, interest rate risk, prepayment speeds, delinquency and default rates, changes (legislative and otherwise) in the asset securitization industry, demand for ContiFinancial Corporation's services, the impact of certain covenants in loan agreements of ContiFinancial Corporation and Continental Grain Company, the degree to which ContiFinancial Corporation is leveraged, its needs for financing, the net interest margin securities market, and other risks identified in ContiFinancial Corporation's Securities and Exchange Commission filings. CONTACT: Jerome M. Perelson Allison H. Wey n. 1. Way; road; path. v. t. & i. 1. To weigh. n. 1. A certain measure of weight. Senior Vice President Senior Vice President ContiFinancial Corporation Edelman Financial 212-207-5402 212-704-4424 |
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