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CVD FINANCIAL ANNOUNCES $27.4 MILLION IN LOAN COMMITMENTS

 PASADENA, Calif., Oct. 25 /PRNewswire/ -- CVD Financial Corp. (AMEX: Common, CVL; Bonds, CVL.A) announced today that it has approved loans aggregating $27.4 million to 11 borrowers. Of this amount, $10.4 million has been funded and $14 million is expected to be funded within 60 days. The funded loans and loan commitments will bear interest at the prime rate plus 7 percent, and have generated equity fees representing 3,825,000 shares and/or warrants to acquire shares of the respective borrowers.
 Roy McCann, president and chief executive officer of CVD Financial, said, "The company is currently negotiating with a number of additional prospective borrowers and we anticipate employing the $20 million remaining from the net proceeds of the recent bond offering by the first quarter of 1994. By then we also expect certain of our borrowers to have completed their public offerings which will include the registration of the securities received as equity fees. We will then be in a position to sell these securities and increase the bondholder/ shareholder return."
 McCann also noted that as of Oct. 22 the company has repurchased approximately $2 million of its bonds on the open market, utilizing equity funds. On Sept. 28, 1993, the company announced a $5 million principal amount bond repurchase program.
 On Aug. 27, 1993, CVD Financial completed its initial public offering of 10,000 units at $5,750 per unit, resulting in gross proceeds of $57.5 million. Each unit was comprised of 200 shares of CVD Financial common stock and five $1,000 15-year variable rate bonds.
 CVD Financial Corp. provides asset secured loans to emerging growth companies that intend to complete a public offering of securities within two years.
 -0- 10/25/93
 /CONTACT: Donald B. Clark, 818-793-7526, or Roy McCann, 818-564-0593, both of CVD Financial; or William F. Coffin, president of Coffin Communications, 818-578-0500/
 (CVL)


CO: CVD Financial Corp. ST: California IN: FIN SU:

LM-JB -- LA010 -- 6151 10/25/93 09:04 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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