Fidelity Holdings Closes On $11.3 Million Debt Facility
28 January 1999
Fidelity Holdings Closes On $11.3 Million Debt Facility
KEW GARDENS, N.Y.--Jan. 28, 1999--Fidelity Holdings, Inc. , today announced that the Company closed an agreement on an $11.3 million debt facility.The facility will be in three tranches, the first of which has been funded, with the final two tranches dependent upon the completion of required milestones set forth in the definitive agreement with Zanett Securities Corporation, the merchant banking firm of the transaction. Terms of the financing were not disclosed.
Doron Cohen, President of Fidelity, stated, "This facility will be of immeasurable assistance as the Company's telecommunications and plastics divisions mature. With the previously announced exploration of the possible divestiture of our non-automotive activities and the increasing focus on acquisitions in our automotive division, the funding allows both the Company and its shareholders to benefit from accelerated growth and related activities."
Bruce Bendell, Chairman and CEO, concluded, "Major Automotive is ambitiously seeking to fulfill its regional acquisition strategy. We anticipate expanding our recently announced acquisitions in the Long Island area to Westchester County and New Jersey. By focusing on the needs and opportunities of each business, the Company will be well positioned to develop each business unit, automotive, telecommunications and plastics, as separate entities with individual criteria for success which are vital in evaluating their potential for growth and for the options the Company is presently considering."
"Our partnership with Fidelity is in keeping with our philosophy of identifying and supporting strong management teams with dynamic business plans," stated, David M. McCarthy, Managing Director of Zanett Securities.
Fidelity Holdings is a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company operates three divisions - Automotive, Technology and Plastics. The Automotive Division operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan area.
Fidelity Holdings, Inc. is presently exploring the divestiture of its non-automotive activities by way of sale, merger, consolidation or other opportunities.
For additional information, visit our website at www.fdhg.com, www.majorautomotive.com and www.majorworld.com.
The information contained in this press release, including any "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's Annual Report on Form 10-K and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.