David,
Great morning here! >gg<......could we see 6?.....
Sandra
AMRESCO Announces $936 Million Commercial Mortgage Loan Sale
PR Newswire, Monday, October 12, 1998 at 09:55
DALLAS, Oct. 12 /PRNewswire/ -- AMRESCO (NASDAQ:AMMB) announced
today
that it has completed the sale of $936 million in commercial mortgage loans.
The cash proceeds from the sale were used to payoff the warehouse facility
used to finance the mortgage loans, with the remainder used for other
corporate needs.
In conjunction with this transaction, AMRESCO has closed its hedge
position related to the mortgages and thereby has eliminated the potential for
future margin calls related to these hedges and mortgage loans. The gain
resulting from the loan sale was offset by hedging losses, resulting in a
$35.8 million net loss.
"This transaction substantially reduces the size of our balance sheet,
strengthens our liquidity position and reduces the risk associated with
carrying commercial mortgages in the current difficult market environment,"
said Robert H. Lutz, Jr., chairman and CEO of AMRESCO.
Earnings per share for the recently completed third quarter are expected
to be nominal, ranging from $0.00 to $0.03 per fully diluted share. This
level of profitability reflects the mark to market of the company's entire
commercial mortgage portfolio at quarter end, including unfunded commitments.
AMRESCO expects to provide a full earnings release on October 20, 1998.
AMRESCO, INC. is a diversified financial services company specializing in
commercial and residential real estate and home equity lending; asset
management workout services; and commercial finance. The company is
headquartered in Dallas and has offices nationwide as well as internationally
in Canada, United Kingdom and Mexico. For more information about AMRESCO,
visit the web site at www.amresco.com.
SOURCE AMRESCO, Inc.
-0- 10/12/98
/CONTACT: Media: Caroline Free, 214-953-8478, or cfree@amresco.com, or
Investors and Analysts: Tom Andrus, 214-953-7704, or investor@amresco.com,
both of AMRESCO, Inc./
/Web site: amresco.com
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