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GREEN TREE FINANCIAL CORPORATION ANNOUNCES FILING FOR SALE OF NET INTEREST MARGIN CERTIFICATES

 SAINT PAUL, Minn., Jan. 18 /PRNewswire/ -- Green Tree Financial Corporation (NYSE: GNT) announced today that it had filed a registration statement with the Securities and Exchange Commission for the public sale of approximately $539 million of Securitized Net Interest Margin Certificates. The sale will monetize approximately 78 percent of the market value of the residual cashflow of pools of manufactured housing contracts previously sold by Green Tree between 1978 and 1993. The residual cashflow represents estimated interest margins to be collected from contracts previously sold net of allowances for contracts sold with recourse and estimated insurance and guarantee fees. Subordinated certificates representing approximately 22 percent of the residual will be retained by the Company. The yield on the certificates will be established at the time of pricing.
 Lawrence M. Coss, Green Tree's chairman and chief executive officer, said: "This is a substantial, positive step for Green Tree. It dramatically strengthens our financial position and liquidity. Green Tree will use the proceeds of this sale to pay down short term debt and support our future growth."
 Green Tree does not anticipate recording a gain or loss on the sale of the senior certificates, but will recognize differences from current book value in the valuation of the retained certificates.
 The sale is being lead managed by Lehman Brothers and co-managed by Merrill Lynch & Co.
 Green Tree Financial Corporation, based in St. Paul, is a national diversified financial services corporation with a loan portfolio of approximately $7 billion. Green Tree's common stock is traded on the New York and Pacific Stock Exchanges under the symbol "GNT."
 -0- 01/18/94
 /CONTACT: John W. Brink of Green Tree Financial Corp., 612-293-3400; or John Mackay of Padilla Speer Beardsley, 612-871-8877 or 212-751-8338, for Green Tree Financial/
 (GNT)


CO: Green Tree Financial Corporation ST: Minnesota IN: FIN SU:

CP-DB -- MN019 -- 2969 01/18/94 17:26 EST
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Publication:PR Newswire
Date:Jan 18, 1994
Words:311
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