Mace Security International Receives Financing From Bank One, Texas N.A.
18 February 2000
Mace Security International Receives Financing From Bank One, Texas N.A.
MOUNT LAUREL, N.J., Feb. 18 -- Mace Security International,
Inc. (MSI) today announced that it has closed on a loan and
received a financing commitment for a second loan from Bank One, Texas N.A.
(Bank One). The loan and the commitment total approximately $10 million.
Bank One is a subsidiary of Bank One Corporation, which is the nation's fourth
largest bank holding company with total assets of more than $260 billion.
The loan, which closed on February 17, 2000, is a three year secured term
loan in the amount of $4.9 million. The loan, which has a monthly payment
based on a 15 year amortization schedule, refinanced a seller note associated
with the acquisition of Genie Car Wash, of Austin, Texas. The Genie
acquisition was consummated in May 1999. The loan also provides approximately
$400,000 in additional funding for capital improvements.
Additionally, MSI has received a commitment from Bank One to refinance and
extend several current term loans, held by Bank One, totaling approximately
$4.7 million. The term loans were assumed by the Company in connection with
the Colonial Car Wash acquisition, which was consummated in May 1999. The
Colonial commitment also provides approximately $400,000 in additional funding
for capital improvements. This commitment is subject to customary closing
conditions, which the Company is confident will be satisfied.
Louis D. Paolino, Jr., CEO and Chairman of MSI, said, "We have now
refinanced the terms of the majority of the Company's short term debt. We
have a strong balance sheet having a total debt to capitalization ratio of
approximately 37%, which is very important for us as we continue to
operationally grow as a business." He added, "Bank One's support illustrates
a substantial vote of confidence in MSI's management team, as well as our
vision and ability to lead the emerging car wash and car care service
industries. We are thrilled to have established a long-term relationship with
one of the nation's leading financial institutions."
Bank One, Texas N.A., a subsidiary of Bank One Corporation, provides
financial services to Texas consumers, small businesses, middle-market
companies and large corporate customers in Austin, Dallas, Fort Worth,
Houston, San Antonio and 61 other communities.
Mr. Paolino also said, "The Colonial and Genie Car Wash Chains were MSI's
first car wash acquisitions. Combined, they consist of 13 car washes in
Austin, Dallas and Fort Worth, Texas. These two car wash chains were the
basis for what is now MSI's largest region [Texas Region] in car wash volume,
number of car wash locations as well as revenues. We have modeled our
corporate operational business plan after the highly regarded operating and
business fundamentals that exist within these two operations."
Mace Security International, Inc. is a provider of car care services,
which owns and operates numerous car washes nationwide. The Company, through
its wholly owned subsidiary, Innovative Control Systems, Inc., is also a
leading manufacturer and supplier of a Windows(R)-based computerized car wash
tunnel control system. Additionally, MSI is a leading producer of less lethal
defense sprays for the consumer market.
This press release includes statements which may constitute forward-
looking statements made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. This information may involve risks
and uncertainties, including but not limitation, risks relating to the
financial outcomes of the planned business and growth strategies, that could
cause actual results to differ materially from the forward-looking statements.
Although the Company believes that the expectations reflected in such forward-
looking statements are based on reasonable assumptions, such statements are
subject to risks and uncertainties that could cause actual results to differ
materially from those projected.
Contact: Eduardo Nieves, Jr., Investor Relations
856-778-2300