Ameritrans Capital Corporation Announces Closing of Sale of Taxicab Medallion Portfolio
October 30 2008 - 8:24AM
Business Wire
Ameritrans Capital Corporation (NASDAQ: AMTC, AMTCP) today
announced that it closed on the sale of substantially all of the
Company�s taxicab medallion loans to Medallion Financial Corp. and
its wholly-owned subsidiary Medallion Bank. Ameritrans utilized
substantially all of the net proceeds from this transaction to
fully pay down its existing bank indebtedness. Subsequent to the
sale, the Company has no short term indebtedness and assets of
approximately $31 million or $9.10 per common share. As of June 30,
2008, Ameritrans� net asset value per share was $5.06. The
Company�s portfolio is currently funded through a combination of
shareholders� equity and SBA guaranteed debentures. The Company
intends to pursue its strategy of repositioning and growing its
portfolio by further building its portfolio of corporate loans. �We
are delighted to close the sale of our medallion portfolio,� said
Michael Feinsod, Chief Executive Officer and President of
Ameritrans. �This transaction simplifies our operating model and
allows the Company to continue to expand our senior-secured, middle
market corporate loan portfolio. The retirement of our existing
bank debt allows the Company to actively pursue our corporate loan
strategy. Given the continued dislocation in the credit markets, we
continue to see excellent opportunities to grow the portfolio and
generate attractive risk adjusted returns for our shareholders.�
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
investments. Ameritrans' wholly owned subsidiary Elk Associates
Funding Corporation is licensed by the United States Small Business
Administration as a Small Business Investment Company (SBIC). The
Company maintains its offices at 747 Third Avenue, 4th Floor, New
York, NY 10017. 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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