HOUSTON, June 4, 2007 (PRIME NEWSWIRE) -- Auto Underwriters of America, Inc. (OTCBB:ADWT), a non-prime vehicle lender and specialty auto retailer, has executed a non binding term sheet out lining the terms and conditions of a credit facility with an institutional investment firm for a three part financing package totaling $46 million. Such credit facility consists of a $24 million revolving credit facility, a $2,000,000 floor plan facility and up to a $ 20 million dollar term loan. The definitive agreements are currently being prepared and negotiated by the parties.
About Auto Underwriters of America, Inc.
Headquartered in San Jose, California, Auto Underwriters of America, Inc. is a growing Company, engaged in non-prime auto financing, specialty automotive retailing and direct lending. The Company acquires directly or through intermediaries installment contracts originated by automobile dealers in connection with their sale of new and used vehicles to borrowers with limited credit histories or past credit problems. Auto Underwriters also provides financing programs to automobile dealers through its Web site, autounderwriters.com, which allows dealers to input various fields of information into an online financing application and obtain an automatic credit decision. In addition, the Company operates specialty automotive dealerships and provides direct lending services for the buy here, pay here market.
Disclosure Statement
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the Company. Some statements in this release, including statements regarding management's expectations for future financial results and access to capital markets, are forward-looking statements. Investors are cautioned that these forward-looking statements regarding Auto Underwriters of America, Inc., its operations and its financial results involve risks and uncertainties, including risks of accessing capital markets on terms acceptable to Auto Underwriters, downturns in economic conditions generally and specifically in the lending and in the retail auto markets; risks regarding market acceptance of and demand for Auto Underwriters' products and services; risks of failing to attract and retain key managerial and technical personnel; risks associated with competition and competitive pricing pressures; risks associated with investing in new businesses; and risk associated with litigation.