AMRESCO Securitizes $65 Million of SBA Loans
DALLAS, Oct. 2 /PRNewswire/ -- AMRESCO, INC. (Nasdaq: AMMB) announced that at the end of the third quarter 2000, the Company closed a $65 million securitization of the unguaranteed portions of business loans made under the government's Small Business Administration (SBA) 7(a) program. This securitization, which represents the Company's third SBA securitization, was managed by Prudential Securities and rated by Moody's Investors Services, Inc. and Fitch, Inc.
Both rating agencies placed a triple-A rating on the Class A Certificates, which represented 90 percent of the offering. The Class M Certificates, which represented 8 percent of the offering, were rated Baa1 by Moody's and BBB+ by Fitch. The Class B Certificates, which represented 2 percent of the offering, were retained by AMRESCO. A portion of the proceeds from this transaction were used to paydown related warehouse debt.
"AMRESCO continues to generate excellent results in its SBA lending activities. 2000 year-to-date origination volumes have exceeded 1999 levels by over 35 percent," says Randy Brown, President of AMRESCO's Commercial Finance Group of which SBA Business Lending is a part.
AMRESCO's Commercial Finance Group provides long-term fixed and floating rate financing to franchisees, small businesses and small commercial real estate owners and equipment financing and leasing to small businesses.
In a separate and unrelated transaction, at the end of the third quarter 2000, AMRESCO paid the former owners of Commercial Lending Corporation (CLC) approximately $25 million in settlement of all current and future earn-out obligations. |
