WACO, Texas, May 23, 2012 (GLOBE NEWSWIRE) -- FirstCity Financial Corporation (Nasdaq:FCFC) today announced that it has closed on a $15 million revolving credit facility with a Central Texas banking syndicate led by First National Bank of Central Texas and joined by Central National Bank. The new credit facility provides FirstCity up to $15 million, subject to borrowing base requirements, to finance its senior debt and equity portion of distressed asset acquisitions, and to provide the company with additional working capital. FirstCity's borrowing base under this loan facility currently supports utilization of the entire $15 million credit commitment.
Commenting on the transaction, James T. Sartain, President and CEO of FirstCity, said, "We are pleased to have this credit facility available to us, which enhances FirstCity's liquidity position and provides another financing option to take advantage of investment opportunities in this robust market. We view this transaction as an important building block in securing a larger-scale credit facility in the future."
This credit facility matures in August 2013, and is secured by substantially all of the assets held by FC Investment Holdings Corporation (a FirstCity wholly-owned subsidiary) and its subsidiaries. The credit facility allows for repayment over time as cash flows from the underlying pledged assets are realized (i.e. this loan facility does not have a scheduled amortization). In addition, FirstCity provided an unlimited guaranty for the repayment of this loan facility.
Additional details regarding this credit facility will be available in FirstCity's Current Report on Form 8-K to be filed with the Securities and Exchange Commission on or prior to Friday, May 25, 2012.
FirstCity Financial Corporation is a diversified financial services company with operations dedicated primarily to distressed asset acquisitions and servicing, and special situations investments. FirstCity has offices in the United States and affiliate organizations in Europe and Latin America. FirstCity common stock is listed on the NASDAQ Global Select Market.
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Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release relate to FirstCity's or management's intentions, hopes, beliefs, expectations, representations, projections, estimates, plans or predictions of the future and, as such, constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are based upon management's beliefs, assumptions and expectations, taking into account currently available information. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known to us. Actual events or results may differ from those expressed or implied in any such forward-looking statements as a result of various factors and risks that are described from time to time in the Company's filings with the SEC including but not limited to its annual reports on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K, filed with the SEC and available through the Company's website, which contain a more detailed discussion of the Company's business, including risks and uncertainties that may affect future results. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the SEC or otherwise. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.