DVI prices $100 million asset securitization.IRVINE, Calif.--(BUSINESS WIRE)--March 14, 1995--DVI Inc. (NYSE NYSE See: New York Stock Exchange :DVI (1) (Digital Video Interactive) An earlier compression technique that provided up to 72 minutes of full-screen video on a CD-ROM. Acquired by Intel in 1988 from RCA's Sarnoff Research labs, Princeton, NJ, DVI never caught on. ) Tuesday announced that it had priced a $100 million asset backed securitization transaction for medical equipment financing receivables. The transaction was the second funding under a $350 million shelf registration statement previously filed by the company with the Securities and Exchange Commission. Prudential Securities Inc. served as underwriter for the company on the transaction. Through a special purpose subsidiary, DVI issued $85.5 million of senior notes and $4.5 million of senior subordinated notes. The company retained the $10 million junior subordinated portion of the transaction. The senior notes are rated "AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. " by Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index , and "Aaa" by Moody's. The rating for the senior notes was obtained through credit enhancement provided by Municipal Bond Investors Assurance Corp. ("MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association "). The senior subordinated bonds are rated "BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. " by Duff & Phelps. The underlying equipment financing contracts generally have a five year term, are non-cancelable and cannot be prepaid by the obligors. The transaction is scheduled for settlement on March 16, 1995. "The transaction was DVI's largest and most efficient asset securitization to date and the comparatively large size of this funding is reflective of the rapid growth of the company's loan portfolio," said Michael O'Hanlon, DVI's president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . He explained that the overall transaction costs were much lower and the interest rate (expressed in terms of the spread over the yield on U.S. Treasury obligations of comparable maturities) was narrower. O'Hanlon indicated that the debt associated with the funding would remain on DVI's balance sheet and that the company would continue to amortize the finance income from the underlying transactions over the term of the contracts. DVI is a leading provider of equipment financing and related services for manufacturers and users of sophisticated medical equipment. CONTACT: DVI Inc., Irvine Sheila Chiri, 714/474-5883 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion