ATLANTA, March 3 /PRNewswire/ -- Altiva Financial Corporation
(Nasdaq: ATVA) announced today that it has received the balance ($4 million)
of the $7 million associated with its recapitalization. The Company has also
received a subscription from over 92% of its old 12% subordinated debt holders
who will exchange their old notes in the principal amount of over $28 million
for new secured notes in the principal amount of approximately $17 million, a
portion of which will be converted into common stock, upon shareholder
approval.
Champ Meyercord, Chairman and Chief Executive Officer of Altiva Financial
said, "With the additional funding received, we have improved our short-term
cash situation. Upon the completion of refinancing our subordinated debt,
which we expect to accomplish next week, we will have significantly
strengthened Altiva's balance sheet. Management can now focus on running the
business to drive production to profitable levels. Long-term improvement is
dependent on our ability to create and sustain consistent profitable
performance."
The recapitalization referred to above is more specifically detailed as
follows: Altiva Financial Corporation sold $14,000,000 principal amount of
12% Secured Convertible Senior Notes of the Company due 2006 (the "New
Notes"). The consideration received for such New Notes consisted of
$4.0 million in cash and the tendering to the Company of $10.0 million
principal amount of previously issued 12% Secured Convertible Notes due
2006. In addition, the Company received a binding commitment from over 92% of
the beneficial owners of its currently outstanding 12% Subordinated Notes due
2001 (the "Subordinated Notes") to exchange their Subordinated Notes
(approximately $28,000,000) for new 12% Secured Convertible Senior Notes due
2006 (the "Exchange Notes") in the principal amount of approximately
$17,000,000. Approximately one-third (1/3) of the Exchange Notes will be
mandatorialy convertible into the company's common stock at $1.00 per share
upon shareholder approval, which is expected.
The Company also announced today that the Expiration Date for
participating in the offer to exchange outstanding Subordinated Notes for new
Exchange Notes has been extended to 5:00 p.m. Eastern Time on Friday, March
17, 2000; however, the Company expects to consummate the exchange with respect
to the holders of 92% of the outstanding Subordinated Notes on Tuesday, March
7, 2000.
Altiva Financial Corporation is a specialty financial services company
that originates, purchases, sells sub-prime home equity loans, conventional
home improvement loans, as well as debt consolidation loans and FHA Title I
loans. The Company is headquartered in Atlanta, Georgia and maintains 20
branch offices nationwide.
To receive Altiva Financial's latest news release and other corporate
documents via FAX -- no cost -- please dial 1-800-PRO-INFO. Use Company Code
ATVA
Or visit Altiva Financial's pages at http://www.frbinc.com .
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known risks, uncertainties or other
factors, which may cause actual results, performances or achievements of the
Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. For
more complete information concerning factors, which could affect the Company's
results, reference is made to various disclosures in the Company's periodic
reports, including reports on Forms 10-K, 10-Q and 8-K, as well as other
documents filed with the Securities and Exchange Commission, including risks
disclosed under the caption "Forward looking Statements" contained in the Form
10K filed with the Securities and Exchange Commission on December 15, 1998, as
such form may be amended from time to time.
SOURCE Altiva Financial Corporation
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Related links:
http://www.frbinc.com
CONTACT:
Champ Meyercord, Chairman & CEO, or J.
Richard Walker, EVP & CFO, both of Altiva Financial Corporation,
800-550-6346; or General Info, Paula Schwartz, Analysts, Regina
Lenihan, or Media Info, David Closs, of The Financial Relations
Board, 212-661-8030
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