ContiFinancial Issues $200 Million of Senior Notes to Repay Parent.NEW YORK--(BUSINESS WIRE)--March 10, 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) ) announced today the sale of $200 million of Senior Notes maturing March 15, 2002, and not subject to redemption prior to maturity, with a coupon of 7.5%. The Notes were initially purchased by Bear, Stearns & Co., Inc. and 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. Corporation for placement with institutional investors under Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. . The proceeds of the Notes will be used to prepay notes to ContiFinancial's majority shareholder, Continental Grain Company, with final maturities of 2000 and 2001 and with coupons of 8.02% and 7.96%, respectively. The Notes will rank equally with all other unsecured senior debt of ContiFinancial, and will have the same restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. as are included in the $300 million 8.375% senior notes maturing August 2003, which were issued in August 1996. These covenants will largely be suspended if and when ContFinancial's senior debt is rated investment grade by Standard & Poor's and Moody's Investor Service. 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, 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. The Notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold without registration under, or applicable exemption from, the requirements of such Act. This does not constitute an offer to sell or solicitation of an offer to purchase any securities. CONTACT: ContiFinancial Corporation Jerome M. Perelson Senior Vice President 212/207-5402 or Edelman Financial 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 212/704-8239 |
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