Smart Choice Automotive Group Finalizes $75 Million Credit Facility
12 May 1998
Smart Choice Automotive Group Finalizes $75 Million Credit Facility
TITUSVILLE, Fla., May 12 -- Smart Choice Automotive Group,
Inc. , a leading consolidator of the 'dealer-financed' used car
retailing industry in the Southeastern United States, today announced that
FINOVA Capital Corporation, a subsidiary of FINOVA Group, Inc. ,
has expanded the size of the Company's credit line to $75 million, from the
previous limit of $35 million. The credit facility is secured by the
receivables portfolio of the Company's Florida Finance Group subsidiary.
Headquartered in Phoenix, Arizona, FINOVA Group, Inc. is a financial
services holding company which provides a broad range of financing and capital
market products to mid-sized businesses. FINOVA's revenues for the year ended
December 31, 1997, approximated $945 million.
"Smart Choice Automotive Group has demonstrated the credit discipline we
look for in this marketplace," commented Steve Cammack, vice president and
manager of the Rediscount Division of FINVOA Capital Corporation. "Management
has proven to FINOVA that it can integrate acquired assets, people and systems
effectively and on a timely basis. We believe that Smart Choice will be able
to further penetrate the subprime automobile market with this expanded credit
facility."
"This represents a significant commitment by one of our key business
partners, and it will allow us to continue our growth during a period when
many of our competitors have exited the industry due to a lack of adequate
financing," noted Gary Smith, president and chief executive officer of Smart
Choice Automotive Group, Inc. "We believe that our relationship with FINOVA
is extremely important to us as we continue our consolidation of the used car
retailing industry."
Smart Choice Automotive Group, Inc. operates a network of 24 new and used
car dealerships in the Southeastern United States. The Company underwrites,
finances and services retail installment contracts generated from the sale of
used cars by its dealerships. Its Eckler's Industries subsidiary is one of
the world's largest aftermarket suppliers of Corvette parts and accessories.
The Company also provides insurance services to automobile dealerships and
its loan portfolio customers.
Smart Choice Automotive Group, Inc. is headquartered in Titusville,
Florida and its common stock trades on Nasdaq under the symbol "SMCH".
This press release includes statements that may constitute "forward-
looking" statements, usually containing the words "believe", "estimate",
"project", "expect" or similar expressions. These statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements. Factors that would cause or contribute to such
differences include, but are not limited to, continued acceptance of the
Company's products in the marketplace, competitive factors, dependence upon
third-party vendors, and other risks detailed in the Company's periodic report
filings with the Securities and Exchange Commission. By making these forward-
looking statements, the Company undertakes no obligation to update these
statements for revisions or changes after the date of this release.
SOURCE Smart Choice Automotive Group, Inc.