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CAPITAL ASSOCIATES ANNOUNCES LONG-TERM RENEWAL OF PRINCIPAL CREDIT FACILITY

 LAKEWOOD, Colo., Dec. 21 /PRNewswire/ -- Capital Associates, Inc. (NASDAQ-NMS: CAII), an asset management and financial services company, announced today that the Company and its senior lenders signed a 30-month renewal of its principal credit facility. The renewal provides for: (i) a $10.75 million Revolving Credit Facility with interest at prime plus 1 percent, (ii) a $46 million Term Loan to be amortized at a minimum of $1.45 million per month including interest at 6 percent, and (iii) contingent interest payable at prime plus 3 percent, net of interest actually paid, in the event the Company successfully completes a refinancing. Provided the Company generates funds as set forth in its business plan and makes all Term Loan payments when due, the Company would have approximately $11 million from operations to invest in new business.
 "The Company is extremely pleased with the terms of the renewal," said Dennis Lacey, the President and CEO of Capital. "This financing provides us with adequate financing to conduct operations while the Company continues its business turnaround and seeks additional financing."
 The Company also announced that it has retained Hanifen Imhoff, Inc. as investment advisor to assist the Company in seeking and closing financing for the Company.
 Capital Associates, Inc. is principally engaged in (1) buying, selling, leasing and remarketing new and used equipment, (2) managing equipment on and off-lease, (3) sponsoring, co-sponsoring, managing and co-managing publicly-registered income funds and (4) arranging equipment-related financing.
 -0- 12/21/92
 /CONTACT: Corporate Communications of Capital Associates, 303-980-1000/
 (CAII)


CO: Capital Associates, Inc. ST: Colorado IN: FIN SU:

BB -- DV006 -- 0193 12/21/92 16:45 EST
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Publication:PR Newswire
Date:Dec 21, 1992
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