ContiFinancial Corporation announces acquisition of up to 22.5% of Ivy Mortgage Corporation.NEW YORK--(BUSINESS WIRE)--April 30, 1997--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) ) today announced the acquisition of a 9.5% equity interest in Ivy Mortgage Corporation. Under the terms of the acquisition, ContiFinancial will receive up to a 22.5% ownership interest in Ivy, subject to Ivy's meeting certain volume requirements and subject to receiving certain state regulatory approvals. ContiFinancial will provide warehouse funding to permit Ivy to accumulate and securitize Securitize The practice of a company selling accounts receivables or other debts owed to it. The third party that buys the debt assumes ownership of it and the responsibility for collecting the debts, and keeps the repayments when made. non-conforming B/C B/C Because B/C Broadcast B/C Boundary Conditions B/C Biological & Chemical home equity loans, as well as 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. and bond placement services through ContiFinancial Services Corporation. Ivy, founded in 1989, is headquartered in Belle Mead, New Jersey Belle Mead is an unincorporated community located within Hillsborough Township and Montgomery Township, Somerset County in the U.S. state of New Jersey. Up until about 1875, Belle Mead, then named Plainville, was part of Harlingen. , and originates home equity and conforming mortgage loans, currently aggregating approximately $15 million per month, through retail production channels. Ivy operates primarily in the southeastern and eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , through a 33-branch network. Ivy's founders, Larry Gardner William Lawrence "Larry" Gardner (May 13 1886 - March 11 1976) was a third baseman in Major League Baseball. From 1908 through 1924, Gardner played for the Boston Red Sox (1908-17), Philadelphia Athletics, and Cleveland Indians (1919-1924). and David Gardner David Gardner is one of the three founders of The Motley Fool. He is currently co-chairman of the board. He attended the University of North Carolina at Chapel Hill on a Morehead-Cain Scholarship. , will continue to serve as Ivy's Chairman and President, respectively. Ralph Picarillo will serve as Ivy's Executive Vice President and Chief Financial Officer. "Joining forces with ContiFinancial will provide the financial strength and securitization expertise necessary to allow Ivy to increase originations significantly and enable us to access the securitization marketplace," commented Larry Gardner. James E. Moore, President and Chief Executive Officer of ContiFinancial, noted, "Ivy Mortgage Corporation is an important part of ContiFinancial's overall plan to increase our presence in retail production channels in the United States." 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, purchaser, seller and servicer of home equity loans made to borrowers whose borrowing needs may not be met by traditional financial institutions. In addition, ContiFinancial provides financing, securitization and, through ContiFinancial Services Corporation, bond placement services to originators of a broad range of loans, leases and receivables, including home equity loans, adjustable rate mortgages, sub-prime and non-prime auto loans, home improvement loans, franchisee loans, time-share loans, equipment leases and multi-family and other commercial real estate mortgage loans. Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements under the federal securities laws. There are many important factors that could cause ContiFinancial Corporation's and Ivy Mortgage 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, including interest rate risk, prepayment, delinquency and default rates, changes (legislative and otherwise) in the asset securitization industry, demand for ContiFinancial Corporation's and Ivy Mortgage 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, and other risks identified in ContiFinancial Corporation's Securities and Exchange Commission filings. CONTACT: ContiFinancial Corporation Jerome M. Perelson, (212) 207-5402 OR Joseph Kist/Kerry O'Brien Edelman Financial, (212) 704-8239/8292 |
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