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| May 11, 2000 Money
Tightens Up From
Paul Menzel Dow Jones Newswire Reports: Market Smacks Down Finova Group, Financial Sector Bonds May 10, 2000, Dow Jones Newswires, NEW YORK, By JOHN DOOLEY-- The bond market has slapped Finova Group Inc.'s (FNV) bonds so hard this week that the company's competitors in the finance business are feeling it. Bonds issued by the Scottsdale, Ariz.-based commercial finance company, and its subsidiary Finova Capital Corp. dropped sharply on Tuesday, one day after Moody's Investor Service downgraded Finova Capital's senior debt rating to Baa2 from Baa1. Standard & Poor's on Tuesday said it may change Finova Capital's BBB-plus senior unsecured debt rating. The ratings agencies' moves came after Finova said it hired Credit Suisse First Boston to explore "strategic alternatives" and drew $1.6 billion on a $4.5 billion bank loan to retire $1.6 billion in commercial paper. The value of Finova debt continued to fall on Wednesday and appeared to be taking other bank and finance companies' debt down with it. Finova Capital's 7.25% coupon notes due Nov. 2004, Wednesday afternoon were quoted at 72 bid on a price basis, down about 3 points from Tuesday, and about 16 points from Monday, one trader said. The bonds were sold November 1 at a price of 99.6. Finova's troubles soured bond traders on other finance companies as the market is nervous about the health of finance companies in general, analysts said. "Problems at Finova and Conseco and the subsequent rapid deterioration of their debt has investors nervous about the entire sector," said Mark Gross, fixed-income analyst at Prudential securities. The bonds of Conseco Inc. (CNC) plummeted to "distressed" levels earlier this month after they were downgraded to speculative-grade status. "There's a lot of fear and loathing surrounding finance companies right now," one trader said. Yield spreads on Household Finance bonds were quoted as much as 15 basis points wider on the day and 30 basis points wider than where they started the week. Yield Spreads on CIT Group Inc. and Associates First capital Corp. debt were quoted about 25 basis points wide of Monday's levels. Yield spreads on corporate bonds overall were quoted 3 to 5 basis points wider Wednesday morning in an il liquid market that has seen trading slow down ahead of next week's Federal Open Market Committee Meeting. Meilee Smythe, Finova's treasurer, said the market seems to be reacting harshly to the ratings actions and uncertainty surrounding the company's hire of Credit Suisse First Boston. Citing strong internal cash flow, Smythe said the company is ready to satisfy its obligations to bondholders, including $125 million in fixed-rate senior notes coming due June 1. "We are ready to meet any obligations we have to our bondholders," Smythe said. *************************************************
-- Kit, Nice to see you again at the UAEL Spring conference, and thanks for that quote regarding the positive change in business that we continue to experience at LeaseTeam. Today we attend, for the second consecutive year, the Top 25 Small Business Awards Banquet, recognizing the 25 fastest growing small business's in Omaha. We are especially gratified by this award since we are a 11 year old company...and all of the other top 25 average 3 years or less in business. Who says, the leasing industry is mature and retracting. We believe that through leasing industry consolidation come renewed growth opportunities. Almost as in a major forest fires, large trees fall and up from there ashes comes many new trees, that over time will become the new forest of the future. That is the leasing industry to us. As a business owner, I am especially grateful to all our wonderful customers(Equipment lessors throughout North America), and our dedicated employee partners, and all our friends in the industry. We feel there is no better place to make a difference for ourselves and our clients than in this very entrepreneurial industry, and fast changing industry. The thing that drives us is in fact the constant evolving change. Thanks again. Best Regards, Randy
Haug Vice President / Partner UniCapital To Release First-Quarter Earnings on May 15 MIAMI--(BUSINESS WIRE)----UniCapital Corporation (NYSE:UCP) today said it will announce earnings for the first quarter of fiscal 2000 on Monday, May 15. UniCapital Corporation provides asset-based financing in strategically diverse sectors of the commercial equipment leasing industry. Headquartered in Miami, UniCapital originates, acquires, sells and services equipment leases and arranges structured financing in the big ticket, middle market, small ticket and computer and telecommunications segments of the commercial equipment leasing industry.
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