Server: Microsoft-IIS/2.0 Date: Thu, 18 Dec 1997 08:17:49 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Mon, 15 Dec 1997 22:38:16 GMT Content-Length: 6880
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FIRSTPLUS FINANCIAL GROUP, INC. and Deutsche Morgan Grenfell Inc. Announce Committed Financing Facility FIRSTPLUS FINANCIAL GROUP, INC. (Nasdaq: FPFG) today announced that it has executed a $1.6 billion committed warehouse and residual financing facility with German American Capital Corporation, a subsidiary of Deutsche Bank North America Holding Corp. ("Deutsche Bank North America"). FIRSTPLUS will use the facility to fund its second lien installment loans and the residual interests it generates from its related securitization activities. Pricing for borrowings under the new committed warehouse facility is Libor plus 0.5%, a 50 basis point improvement from FIRSTPLUS most favorably priced current warehouse facility. The residual financing portion of the facility features a similarly preferential financing rate. This facility is part of an overall plan to reduce all FIRSTPLUS funding costs and further strengthen its balance sheet through committed facilities. Dan Phillips, FIRSTPLUS CEO, said, "This new line of credit gives FIRSTPLUS access to an attractive funding rate on a committed basis. The lower financing costs should translate into stronger 1998 cash earnings, as the net spread on loans residing on our balance sheet increases substantively as a result of this transaction. Equally as important, the commitment and its associated relationship with Deutsche Bank North America and its affiliate, Deutsche Morgan Grenfell Inc. ("DMG"), produces a stronger FIRSTPLUS balance sheet. The relationship with Deutsche Morgan Grenfell Inc. should significantly enhance FIRSTPLUS capability to access the global capital markets for its securitization and other capital raising activities." Kevin Ingram, Managing Director of Deutsche Morgan Grenfell Inc., added, "DMG is very pleased to begin this relationship with FIRSTPLUS, a company we view as a market leader among financial services companies. We view this as the beginning of a long-term relationship which DMG hopes to expand over the years ahead. Initially, DMG will assist FIRSTPLUS with the expanded funding, securitization and securities underwriting services that we offer in the domestic capital markets. In addition, through DMGs global funding and securities underwriting platform, we also hope to assist FIRSTPLUS to expand its opportunities and business in Europe." The above statements in this press release contain forward-looking statements that involve a number of risks and uncertainties. In addition to the factors discussed in this press release, reference is made to the Form 8-K, filed by the Company with the Securities and Exchange Commission on December 19, 1996, for a list of, and discussion with respect to, certain factors that could cause actual results to differ materially from the forward-looking statements contained herein. FIRSTPLUS FINANCIAL GROUP, INC. is a specialized consumer finance company that, through its subsidiaries, originates, purchases, services and securitizes consumer finance receivables, primarily home improvement and debt consolidation loans, all secured by liens on the borrowers home. FIRSTPLUS, headquartered in Dallas, has regional offices in Denver, Colorado; Holly Springs, Mississippi; Columbus, Ohio; Columbia, South Carolina; Laguna Hills, California; Salt Lake City, Utah and a network of origination branches nationwide. If you have questions regarding any press release, please Email: press_release@firstplus.com. Thank you. |