ContiFinancial Corporation files registration statement for 2,800,000 shares of common stock.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY--(BUSINESS WIRE)--February 14, 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 filed a registration statement under the Securities Act of 1933 with respect to primary offerings of 2,800,000 shares of common stock. The issue is to be underwritten by Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. and Bear, Stearns & Co. Inc., and will be offered both in the 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. and internationally. The issuance of the shares will reduce Continental Grain Company's ownership of ContiFinancial from approximately 81% to approximately 76%, excluding the exercise of over-allotment options. 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). from the offerings will be used by the Company for general corporate purposes, including funding loan originations and purchases, supporting 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. transactions, and other working capital needs. Simultaneous with the primary offerings of common stock, Continental Grain will be entering into a forward purchase contract with the ContiFinancial STRYPES Trust, pursuant to which 2,800,000 shares of common stock currently owned by Continental Grain may be distributed to holders of the STRYPES(SM) issued by the Trust upon conclusion of its term in 2000. The STRYPES(SM), a variety of convertible debt, are being offered publicly simultaneous with the primary offerings of common stock. ContiFinancial 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 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, an NASD-registered broker dealer, 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. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. When available, copies of the prospectuses relating to these offerings may be obtained from the underwriters. -0- SM Service mark of Merrill Lynch & Co., Inc. CONTACT: Jerome M. Perelson Senior Vice President ContiFinancial Corporation (212) 207-5402 or Joseph Kist kist n. Variant of cist2. kist Noun Scot & S African a large wooden chest Kist a chest of money, hence, a store or cache of money, 1619. Vice President Edelman Financial (212) 704-8239 |
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