Still trying to confirm my last post. I am waiting for the individual who shared the information with me to show me where he got his information. There was a release today:
FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 22, 1997--NAL
Financial Group Inc. (Nasdaq:NALF) Friday announced that it has
approved a transaction wherein Conseco Private Capital Group or its
affiliates ("Conseco") will acquire a controlling interest in the
outstanding common stock of the company.
Conseco, which currently owns $10 million of convertible
subordinated debentures that it acquired from the company on April 23,
1996, has notified NAL that it intends to acquire the remaining
$11 million of the company's outstanding convertible subordinated
debentures.
Subject to customary governmental approvals, which are expected
to take approximately 30 days, Conseco has agreed to convert all of
the debentures into shares representing approximately 85% of the
company's common stock, reflecting an average conversion price of
approximately 31 cents per share, in compliance with the existing
conversion features of the debentures.
As part of the overall transaction, Conseco has agreed to
provide an additional $10 million of financing to the company. Of
that, up to $5 million will be provided in an interim loan facility
pending closing. The remainder will be provided in equity financing
at the closing.
Concurrent with the closing, the company's board of directors
will be increased from four to seven members, the additional three
being designees of Conseco.
Conseco has also agreed that, for a period of three months
following the closing, it will refrain from conducting any
non-consensual going-private transactions, and, for an additional
three-month period, any such going-private transactions will require
the approval of the disinterested members of the company's board of
directors.
According to NAL's Chairman and Chief Executive Officer, Robert
R. Bartolini, "This transaction is a monumental milestone in the
future of NAL, as it provides us with the sponsorship of a
highly-reputable $31 billion Fortune 500 financial services
corporation.
"NAL has had a very cooperative and successful relationship with
Conseco for more than a year and a half, and we look forward to
working even closer with them going forward. It is the companies'
mutual goal for NAL to become a premier non-prime auto finance
source for our dealers. NAL currently serves over 2,800 dealerships
in 24 states and has regional offices in Orlando and Atlanta.
"I want to personally thank all of our dealers, our shareholders,
and especially our staff, for their loyalty and patience over the
past few months. As a result of our alliance with Conseco, NAL is
very excited and optimistic about our future viability and growth
opportunities, and we can look forward to better serving our dealers
and providing a positive dynamic environment for our employees."
NAL Financial Group Inc. is a specialized automobile finance company
engaged in the purchase, securitization and servicing of automobile
finance contracts originated by franchised and select independent
dealers in connection with sales or leases of used and new
automobiles to consumers with non-prime credit.
-0-
This release may be deemed to contain forward-looking statements
that involve a number of risks and uncertainties, including those
risk factors listed from time-to-time in NAL's SEC reports,
including, but not limited to, the report on Form 10-Q for the
quarter ended June 30, 1997 (Part II, Item 5, Cautionary Statement
for Purposes of the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995).
-0-
For more information on NAL Financial Group, via fax at no charge,
please dial 1-800-PRO-INFO, and enter ticker NALF.
CONTACT:
NAL Financial Group
JoAnn Woodside, VP/Investor Relations, 954/958-3605
or
The Financial Relations Board
Joe Calabrese (general), 212/661-8030
|
