Printer Friendly

CALFED BEGINS SOLICITATION OF STOCKHOLDERS, BONDHOLDERS

 LOS ANGELES, Nov. 17 ~PRNewswire~ -- CalFed Inc. (NYSE: CAL) said today that it has begun soliciting stockholder approval and bondholder participation in its proposed restructuring. The essential parts of the restructuring are a merger of CalFed Inc. into a subsidiary of California Federal Bank, the company's principal subsidiary, and an offer to exchange California Federal Bank common stock and new 10 percent subordinated debt of the bank due 2003 for the company's outstanding 6 1~2 percent convertible subordinated debentures due 2001.
 In connection with the exchange offer, the company is also seeking the approval of the tendering bondholders to certain amendments to the indenture governing the company's debentures that would postpone from Feb. 20, 1993, until Feb. 20, 2000, the date on which bondholders can require the company to redeem their debentures at a premium. The exchange offer commenced yesterday and expires on Dec. 15, 1992.
 A special stockholders meeting on the proposed restructuring will be held in Los Angeles on Dec. 16, 1992. Proxy statements relating to the meeting were mailed to stockholders beginning Monday, Nov. 16, 1992, the company said.
 The restructuring proposals will not be consummated unless (1) at least 90 percent of the outstanding debentures of the company are validly tendered and not withdrawn pursuant to the exchange offer prior to the expiration date, (2) the restructuring proposals are approved by a majority of the outstanding shares of the company, (3) the merger of the company into a subsidiary of the bank is completed, and (4) approval of the restructuring is obtained from the Office of Thrift Supervision.
 "We urge stockholders to read their proxy materials carefully and vote their shares promptly," said Jerry St. Dennis, chairman and chief executive officer of CalFed Inc. "The Office of Thrift Supervision continues to insist that this transaction be completed by Dec. 31, 1992."
 CalFed Inc. is a Los Angeles-based financial services holding company. Its principal subsidiary, California Federal Bank, FSB, provides retail banking services and home mortgage loans through 170 branches in California, Florida, Nevada and Georgia.
 -0- 11~17~92
 ~EDITOR'S NOTE: This announcement shall not constitute an offer to sell or the solicitation of an offer to buy. Copies of the exchange offer documents and proxy statements relating to the proposed restructuring are available from the Investor Relations and Corporate Communications Division, CalFed Inc., 5700 Wilshire Blvd., Suite 535, Los Angeles, CA 90036; phone: 213-932-4200.~
 ~CONTACT: James F. Hurley, 213-930-9750, or Frank W. Moore, 213-932-4203, both of CalFed~
 (CAL)


CO: CalFed Inc.; California Federal Bank ST: California IN: FIN SU: RCN

JB-LS -- LA012 -- 1675 11~17~92 08:31 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 17, 1992
Words:435
Previous Article:HANSEN NATURAL CORP. (HANS) REPORTS NET OF $185,443 FOR THIRD QUARTER
Next Article:CACI ANNOUNCES COURT DECISION IN OFFICE LEASE CASE
Topics:


Related Articles
CALIFORNIA FEDERAL BANK WILL FILE REVISED CAPITAL PLAN; IMCR MAY BE WITHDRAWN
CALFED TO MEET WITH BONDHOLDERS
CALFED INC. REPORTS 1992 SECOND QUARTER, FIRST HALF RESULTS
CALFED INC. MAKES EXCHANGE OFFER FILING
CALFED INC. TO MEET WITH BONDHOLDERS
CALFED EXCHANGE OFFER SUCCESSFUL, RESTRUCTURING APPROVED BY STOCKHOLDERS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters