Did anyone notice this:
biz.yahoo.com
Monday May 8, 5:45 pm Eastern Daylight Time.
FINOVA Group Inc. to Explore Strategic Alternatives
FINOVA Capital Corporation Draws on $1.6 Billion Bank Backup Facilities to Ensure Operating Stability
SCOTTSDALE, Ariz., May 8 /PRNewswire/ -- The FINOVA Group Inc. (NYSE: FNV - news) announced today that its board of directors has retained Credit Suisse First Boston to assist the company with a comprehensive evaluation of its strategic alternatives.
``Marketplace conditions have changed significantly for FINOVA over the past several months, and we have previously indicated that these conditions will slow our growth for the foreseeable future,'' said FINOVA Group President and Chief Executive Officer, Matt Breyne. ``Under these circumstances, FINOVA's board and management team believe that a comprehensive review of all strategic alternatives available to us will lead to the best possible value for shareowners and allow us to continue as a leader in our marketplace.''
Separately, The FINOVA Group announced that its primary operating subsidiary, FINOVA Capital Corporation, has notified lending institutions that it will draw down $1.6 billion against two 364-day commercial paper backup facilities, which were scheduled to mature on May 16. The draw-down of these facilities was made necessary by the decision of banks holding approximately $500 million, not to renew. The proceeds will be used to retire $1.6 billion of commercial paper obligations, leaving the company with commercial paper backup facilities totaling $2.9 billion that will provide full coverage of its remaining commercial paper obligations.
``While the draw-down of these facilities will increase FINOVA's near-term funding costs, the stabilization of the company's near-to-intermediate term liquidity position will allow for the review of our strategic alternatives to proceed on an optimal basis,'' Mr. Breyne said.
The FINOVA Group Inc. (NYSE: FNV - news), through its principal operating subsidiary, FINOVA Capital Corporation, is one of the nation's leading financial service companies focused on providing a broad range of capital solutions primarily to midsize business. FINOVA is headquartered in Scottsdale, Ariz., with business development offices throughout the U.S. and in London, U.K., and Toronto, Canada. For more information, visit the company's website at www.finova.com.
SOURCE: The FINOVA Group Inc.
Just another brick falling out of the wall.
Got liquidity? |
