ContiFinancial Increases Its Commercial Paper Program.NEW YORK--(BUSINESS WIRE)--August 24, 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) ) today announced a renewal and increase of its commercial paper program from $275 million to as much as $325 million. The Letter of Credit and Reimbursement Agreement has been co-arranged by Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. and Dresdner Kleinwort Benson with participation by a group of thirteen other major U.S. and foreign banks. Current commitments under the Agreement will allow the Company to issue up to $317.5 million of commercial paper. Dresdner Bank will issue an irrevocable direct-pay letter of credit to provide credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing for commercial paper issued and sold by the Company. Credit Suisse First Boston will act as placement agent. The commercial paper has been rated A-1+, P-1, and F1+ by Standard & Poor's Rating Group, Moody's Investor Service and Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals , Inc., respectively. The commercial paper proceeds will be used for working capital and liquidity purposes and will be available in addition to the Company's previously arranged $200 million unsecured three-year revolving bank credit facility, and its $2.8 billion of committed warehouse facilities. 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. and approximately 3,000 employees nationwide. The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, securitizer and servicer of home equity loans made to borrowers whose borrowing needs may not be met by traditional financial institutions. In addition, through ContiTrade Services L.L.C. and its ContiMAP(R) conduit, the Company finances a wide range of commercial real estate. Through ContiTrade Services L.L.C., the Company also 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 subsidiaries and other 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, non-prime and sub-prime auto loans; equipment leases; charged-off consumer debt; franchisee loans and time-share loans.
CONTACT: Jerome M. Perelson
ContiFinancial Corporation
212/207-5402
or
Allison H. Wey
Edelman Financial
212/704-4424
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