SAN JACINTO, CALIF. (Nov. 2) BUSINESS WIRE -Nov. 2, 1998--Peacock Financial Corp. (0TC BB:PFCK) Monday confirmed that it has executed a
funding agreement with Irvine, Calif.-based Spectrum Securities to fund its real estate operations.
The funding will bring $525,000 into Peacock via Spectrum's underwriting with the security being a new class of asset-backed bonds. The bonds will have
a 5-year term with a fixed 9 percent coupon, with a conversion feature, convertible into Peacock common stock or warrants.
One use of funding proceeds will be to refinance the Virginia Lee Hotel, a 100-year-old, former bed and breakfast that currently serves as the company's
headquarters. In addition, certain proceeds will allow Peacock to close on the acquisition of the historic "Hogan" on Main Street located in downtown San
Jacinto, next to Peacock's headquarters. Purchase of this landmark property was announced last month.
The Hogan will be converted into a coffeehouse as part of the company's plans to redevelop old downtown San Jacinto, which is becoming a tourist
attraction in tandem with the huge Eastside Reservoir project.
Steven Peacock, president of Peacock Financial, stated: "We appreciate Spectrum Securities' support of our firm, and their vote of confidence for the
future of Peacock Financial via this bond offering."
The company expects that this first financing via Spectrum Securities will be completed by year end. Both Spectrum and Peacock believe this is just an
initial start of much more funding to come for its real estate operations.
Peacock financial is a business-development corporation (BDC) with 22 years of real estate experience in land assemblage and planning, infrastructure
design and construction, and inner-city redevelopment projects.
The company's most recent developments are near the Eastside Reservoir, a $3 billion recreational lake in the San Jacinto Valley, currently under
construction by the Metropolitan Water District of Southern California. The lake is expected to draw an estimated 2 million visitors per year to the San
Jacinto Valley.
Safe-Harbor Statement Under the Private Securities Litigation Reform Act of 1995: The statements contained herein that are not historical are
forward-looking statements that are subject to risks and uncertainties that could cause actual results of differ materially from those expressed in the
forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new
technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the company's filings with the
Securities and Exchange Commission.
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