TFCE's Principal Lender Announces Plan to Exit Automobile Finance Market
5 December 2000
TFCE's Principal Lender Announces Plan to Exit Automobile Finance Market
NORFOLK, Va., Dec. 5 TFC Enterprises, Inc. (the Company)
today announced that its wholly owned subsidiary, THE Finance
Company (TFC), extended the term of its revolving credit facility with its
principal lender through March 31, 2001. TFC and its principal lender are
currently negotiating an extension beyond this date. TFC's principal lender
recently announced that it would no longer participate in the business of
financing automobiles or automobile finance companies however; it has assured
the Company that it will work with its customers, including the Company, to
smoothly transition their facilities.
In conjunction with the Company's previously stated plan to diversify its
funding, the Company has been and is currently in discussions with several
lenders. These discussions include revolving credit facilities, warehouse
facilities and a continuation of the securitization program. The Company's
proven ability to comply with the terms and covenants of its various credit
facilities, its profitability in each of the last 11 consecutive quarters and
the successful completion of two securitizations totaling $146 million during
the last 12 months cause management to believe it should be able to diversify
its funding.
In additional to historical information, this press release and statements
by the Company's management team may contain forward-looking statements that
are subject to risks and uncertainties that could cause the Company's results
to differ materially from those anticipated in forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking
statements, which reflect management's current analysis. In accordance with
the Private Securities Litigation Reform Act of 1995, the following are
factors that could cause the Company's actual results to differ materially
from those expressed or implied by such forward-looking statements: failure to
obtain credit facilities to replace the Company's current principal lender, a
rise in interest rates, a deterioration of credit experience, competitive
pricing and other factors, the loss of or reduction in its credit facilities,
or if the Company were to face increased competition. Investors are
encouraged to review TFC Enterprise's SEC filings for more information about
the factors affecting the Company's business.
TFC Enterprises, Inc., conducts its operations through four wholly-owned
subsidiaries: THE Finance Company, specializes in purchasing and servicing
installment sales contracts originated by automobile and motorcycle dealers;
First Community Finance, Inc., is involved in the direct origination and
servicing of consumer loans; and Recoveries, Inc., a third party debt
collection agency, services foreclosed or troubled loan portfolios and
receivables for medical organizations and others. Based in Norfolk, VA, TFC
Enterprises, Inc., has ten contract production offices of THE Finance Company
throughout the United States and twenty-one offices of First Community Finance
in Virginia and North Carolina. The Company's common stock symbol is listed on
Nasdaq National Market and trades under the symbol "TFCE."