and more news... Financing
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ETPI Completes an Agreement for a Working Capital Financing Facility with KBK Financial for $1.5 Million
HOUSTON--(BUSINESS WIRE)---Dec. 9, 1999--Entertainment Technologies & Programs Inc. (OTCBB:ETPI), a fully reporting, diversified company, today announced it has completed an agreement with KBK Financial (AMEX:KBK) for a $1.5 million working capital facility.
This replaces ETPI's current financing facility and lowers ETPI's cost of borrowing by nearly 40%. The working capital facility was acquired for ETPI's NiteLife Entertainment and Performance Sound & Light (PS&L) divisions.
This agreement comes on the heels of ETPI's debt consolidation financing, signed with Capital Growth Planning, the planned acquisition of Multi-Technologies Ltd. and accompanies ETPI's current growth in existing operations. Over the next year, ETPI expects to achieve total revenues of $12 million, pending acquisition, coupled with a significant reduction in the company's cost of capital.
The working capital facility enables ETPI's Performance Sound & Light division to substantially increase sales through increased marketing and promotion enabled by savings in the company's cost of borrowing. PS&L projects a 70% increase in year 2000 sales above 1999. Currently, the company is generating sales well beyond its projected target of $1.9 million.
The cost savings enabled by the KBK Financial agreement will directly augment revenue-generating activities to strengthen the company's sales over projections. ETPI's NiteLife Entertainment division will have greater capitalization flexibility for its military base installations of sound and light equipment, in one of the most promising expansion programs in the company's history.
"This agreement stems from our Focus and Finish efforts over the past year," commented CEO, James D. Butcher, "and reflects our focus on shareholder value. ETPI is growing its core businesses, while at the same time layering on additional value-added business operations to ensure comprehensive growth. This growth is combined with our efforts to substantially reduce the cost of financing. The debt restructuring agreement with Capital Growth Planning and now this line of credit with KBK Financial will provide a firm foundation for our earnings building efforts going forward."
KBK Financial (AMEX:KBK) provides financing products to middle market companies, primarily working capital, but also offers commercial loans, letters of credit, equipment leasing and mezzanine lending. KBK focuses on being a reliable financial ally, providing the tools and assistance its clients need to reach their goals.
Forward-looking statements in this press release are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation changes in ETPI's business environment, completion of a planned funding package, certain other contingencies and other risks.
CONTACT:
Entertainment Technologies & Programs Inc., Houston
Fritz Boudreaux, 281/486-6061
or
KBK Financial, Houston
Randy Gartz, 713/224-4791 |
