AMRESCO Securitizes $70 Million of SBA Loans
DALLAS, Oct. 11 /PRNewswire/ -- AMRESCO, INC. (Nasdaq: AMMB) announces
that it has closed a $70 million securitization of the unguaranteed portions
of business loans made under the government's Small Business Administration
(SBA) 7(a) program. Approximately $8 million of the $70 million was
prefunded. This securitization, which represents the company's second SBA
securitization, was managed by Prudential Securities and rated by Moody's
Investors Services and Duff and Phelps Credit Rating Co.
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 7.75 percent of the offering, were rated A2 by Moody's and
single-A by Duff and Phelps. The Class B Certificates, 2.25 percent of the
offering, were retained by AMRESCO.
"AMRESCO's SBA lending activities continue to grow with 1999 volumes
35 percent greater than 1998 levels," says Randy Brown, president of AMRESCO's
Commercial Finance Group of which SBA Business Lending is a part. "We
continue to have good success at growing all of our commercial finance
business units."
The Commercial Finance Group of AMRESCO provides long-term fixed and
floating rate financing to franchisees, small businesses and small commercial
real estate owners; equipment financing and leasing to small businesses;
single family construction loans to mid-size homebuilders; and term financing
to the broadcast industry. During the first six months of 1999, AMRESCO
commercial finance professionals throughout the country originated
approximately $580 million in these loans. |
