Ameritrans Capital Corporation Announces $2.025 Million Debt Financing
23 December 2009 - 7:08AM
Business Wire
Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) announced
today the completion of a private placement debt financing for the
Company. The financing consists of $2.025 million of 8.75-percent
(8.75%) notes due in December 2011. At the Company’s option, the
notes may be extended until December 2012 at a rate of 5.5%, plus
the then current Prime Rate. The notes pay interest quarterly and
are redeemable by the Company at any time upon not less than thirty
days’ prior written notice to the holder. The notes were sold at
par resulting in aggregate gross proceeds of approximately $2.025
million. Mr. Steven Etra, a member of the Company’s Board, and
certain entities affiliated with Mr. Etra, participated in the
offering.
"The debt financing, together with the receipt of the Company’s
previously announced increase in SBA debenture financing strongly
positions Ameritrans to take advantage of the current financing
markets.” commented Michael Feinsod, Ameritrans Capital
Corporation's chief executive officer and president. “The proceeds
from the note issuance will be used for general working capital and
investment opportunities.”
The notes are not convertible and have not been registered under
the U.S. Securities Act of 1933, as amended, and may not be offered
or sold in the United States absent registration or an applicable
exemption from the registration requirements of the Securities
Act.
About Ameritrans
Ameritrans Capital Corporation is an internally managed,
closed-end investment company that has elected to be regulated as a
business development company (BDC) under the Investment Company Act
of 1940, as amended. Ameritrans originates, structures and manages
a portfolio of secured business loans and selected equity
securities. Ameritrans' wholly owned subsidiary Elk Associates
Funding Corporation was licensed by the United States Small
Business Administration as a Small Business Investment Company
(SBIC) in 1980.
This announcement contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
presently anticipated or projected. Ameritrans Capital Corporation
cautions investors not to place undue reliance on forward-looking
statements, which speak only as to management's expectations on
this date.
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