ContiFinancial announces acquisition of up to 30% of CMG Funding.NEW YORK--(BUSINESS WIRE)--Dec. 23, 1996--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 execution of a definitive agreement for a strategic alliance including the acquisition of up to a 30% equity interest in CMG CMG Coastal & Marine Geology (USGS) CMG Chipotle Mexican Grill, Inc. (stock symbol) CMG Companion (of the Order Of) St Michael and St George CMG Computer Measurement Group Funding Corp. (formerly Continental Mortgage Group, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ). Closing of the strategic alliance, expected by the first quarter of 1997, is conditioned upon receipt of requisite regulatory approvals. Under the terms of the strategic alliance, ContiFinancial will receive a 30% ownership interest in CMG and will provide warehouse funding and other financing to permit CMG to accumulate and securitize non-conforming B/C B/C Because B/C Broadcast B/C Boundary Conditions B/C Biological & Chemical home equity loans. ContiFinancial will also provide securitization and bond placement services to CMG, through its subsidiary ContiFinancial Services Corporation. CMG is headquartered in Salt Lake City, Utah For ships of the United States Navy of the same name, see . Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. , and originates home equity and conforming mortgage loans, currently aggregating approximately $30 million per month, through both wholesale and retail production channels. Currently, CMG operates primarily in the southwestern and western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century , including Utah, Colorado, Nevada, Arizona, Idaho, Texas, Washington and California, through a branch network. CMG's founders, John Fry and Terry Mott, will continue to serve as CMG's President and Executive Vice President, respectively. "Joining forces with ContiFinancial will provide the financial strength and securitization expertise necessary to allow CMG to increase originations and enable us to access the securitization marketplace," commented Mr. Fry. James E. Moore, President and Chief Executive Officer of ContiFinancial, noted, "CMG Funding Corp. is an important part of ContiFinancial's overall plan to increase our presence in the western 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. . ContiFinancial is a leading originator, purchaser, seller and servicer of home equity loans made to borrowers whose credit histories or financial circumstances do not fit conventional bank lending requirements. In addition, ContiFinancial provides financing, securitization and, through its NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). subsidiary, 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 CMG Funding Corp.'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 CMG Funding Corp.'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: Jerome M. Perelson Senior Vice President and Chief Financial Officer 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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