OVERLAND PARK, Kan., Mar 10, 2008 (BUSINESS WIRE) -- Brooke Credit Corporation d/b/a/ Aleritas Capital Corp. (OTCBB: BRCR; BRCRW; BRCRU) today announced that it has successfully closed a senior debt offering totaling $52.5 milion which was originated by First State Bank of Gothenburg, Nebraska. Additionally, 15 community banks located throughout Illinois, Kansas, Nebraska and Oklahoma participated in the loan.
The maturity date associated with the financing is February 28, 2013 and carries an interest rate equal to 7.75%, which adjusts to 175 basis points above the New York Prime Rate. The loan is secured by substantially all of the company's assets. The company also paid approximately $750,000 in closing fees to the originating lender bank and its participating lenders. The Company did not engage an investment banking firm to arrange this financing and as such, no investment banking fees were incurred in connection with the financing.
Approximately $46.7 million of loan proceeds were used to retire the company's debt obligations to Falcon Mezzanine Partners II, LP, FMP II Co-Investment, LLC and JZ Equity Partners, PLC (collectively, "Falcon/JZ"), which was comprised of $45.0 million in principal repayment and approximately $1.7 million in prepayment premium. The Falcon/JZ debt carried a fixed interest rate of 12%. The remaining loan proceeds were used to retire other company debt.
Mick Lowry, Aleritas Capital's President and CEO stated, "I am pleased to announce closing of this transaction and would like to thank our community bank partners for their continued confidence in the Company. Not only did the Company refinance the Falcon/JZ debt at a reduced interest rate of 425 basis points, but the new financing contains less restrictive financial covenants. Closing a sizeable corporate financing transaction at reduced pricing and with less restrictive covenants in today's difficult credit market highlights the value of our community bank network."
About the Company... Aleritas Capital is a specialty finance company that originates loans to insurance agencies and insurance-related businesses. Loans are mostly sold as individual loans to participating lenders or as pooled loans to investors through asset-backed securitizations.
This press release contains forward-looking statements. All forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: the uncertainty that the Company will achieve its short-term and long-term profitability and growth goals, uncertainties associated with market acceptance of and demand for the Company's products and services, the impact of competitive products and pricing, the dependence on third-party suppliers and their pricing, its ability to meet product demand, the availability of funding sources, the exposure to market risks, uncertainties associated with the development of technology, changes in the law and in economic, political and regulatory environments, changes in management, the dependence on intellectual property rights, the effectiveness of internal controls, and risks and factors described from time to time in reports and registration statements filed by the Company with the Securities and Exchange Commission. A more complete description of the Company's business is provided in the Company's reports and registration statements, which are available from the Company without charge at www.aleritascapital.com
or at www.sec.gov.
Contact Info:
Aleritas Capital Corporation
Anita Larson, 913-323-9200
Chairman and Chief Operating Officer
anita.larson@aleritascapital.com
or
The Equity Group, Inc
Adam Prior, 212-836-9606
Vice President
aprior@equityny.com