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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 23, 1998
FIRSTPLUS Financial Group, Inc.
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(Exact name of registrant as specified in its charter)
Nevada 0-27750 75-2561085
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(State or other jurisdiction of (Commission File (IRS Employer
incorporation) Number Identification No.)
1600 Viceroy, 8th Floor Dallas Texas 75235
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 599-6400
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Item 5. Other Events.
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On April 23, 1998, FIRSTPLUS Financial Group, Inc. (the "Company") closed
its first net interest margin transaction. The Company secured $150 million of
bonds with interest only strips ("I/O Strips") and a limited portion of
servicing fees to be earned from its 1996-4, 1997-1, 1997-2, 1997-3 and 1997-4
High LTV Loan securitizations. The bonds carry a coupon of 8.5%, and were sold
at 99.55% of par for a bond equivalent yield of approximately 8.87%. The Company
will assign portions of the I/O Strips to a bankruptcy-remote entity.
In accordance with SFAS No. 125, the Company will account for the
transaction as a financing, and will report no gain as a result of the
transaction.
Item 7. Financial Statements and Exhibits
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(a) Financial statements of businesses acquired.
Not Applicable.
(b) Pro forma financial information.
Not Applicable.
(c) Exhibits.
The following exhibits are furnished in accordance with Item 601 of
Regulation S-K.
99.1 Press Release
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf of the
undersigned hereunto duly authorized.
FIRSTPLUS FINANCIAL GROUP, INC.
Date: May 5, 1998 By: /s/ William P. Benac
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Name: William P. Benac
Title: Chief Financial Officer
Exhibit 99.1
FIRSTPLUS Financial Group, Inc. (NYSE:FP) today announced it had privately
placed $150 million of bonds secured by interest only strips ("I/O Strips"), and
a limited portion of servicing fees to be earned, from its 1996-4, 1997-1,
1997-2, 1997-3 and 1997-4 High LTV securitizations. William Benac, the Company's
CFO, commented, "This financing is a first for the HLTV home equity industry in
securitizing I/O strips and thereby enabling FIRSTPLUS to raise investor funds
from its I/O residuals." These bonds carry an 8.5% coupon and were sold at
99.55% of par for a bond equivalent yield of approximately 8.87%. FIRSTPLUS will
assign portions of the I/O Strips to a bankruptcy remote entity. In accordance
with SFAS No. 125, FIRSTPLUS will account for this transaction as a financing
and will report no gain as a result of it.
The securities offered have not been and will not be registered under the
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from registration requirements.
FIRSTPLUS financial Group, Inc. is a diversified consumer finance company that,
through its subsidiaries, originates, purchases, services, securitizes and sells
consumer finance receivables. FIRSTPLUS, headquartered in Dallas, Texas, has
regional offices in Denver, Colorado; Holly Springs, Mississippi; Greenville,
South Carolina; Columbus, Ohio; Columbus, South Carolina; Mission Viejo,
California; Salt Lake City, Utah; Tustin, California and a network of
organization branches nationwide. FIRSTPLUS also operates an industrial bank out
of Tustin, California.
