SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of Earliest Event Reported): March 17, 1998
National Auto Finance Company, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
0-22067 65-0688619
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(Commission File Number) (I.R.S. Employer
Identification No.)
621 N.W. 53rd Street, Suite 200
Boca Raton, Florida 33487
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(Address of Principal Executive Offices) (Zip Code)
(561) 997-2413
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(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
Filed herewith and incorporated herein by reference is a copy of the
National Auto Finance Company, Inc. (the "Company") Press Release, dated March
17, 1998, announcing that: (1) the Company has signed a referral agreement with
U.S. Bank, N.A.; and (2) the Company's independent auditor is continuing to
review emerging issues under Statement of Financial Accounting Standards No. 125
that may affect the Company's accounting policies and the related valuation of
certain of the Company's securitization assets.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(a) Exhibits.
(99) Press Release, dated March 17, 1998.
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NATIONAL AUTO FINANCE COMPANY, INC.
FORM 8-K
CURRENT REPORT
Exhibit Index
Exhibit No. Description Page
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(99) Press Release,
dated March 17, 1998
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
Date: March 19, 1998.
NATIONAL AUTO FINANCE COMPANY, INC.
By: /s/ Kevin G. Adams
Name: Kevin G. Adams
Title: Senior Vice President, Finance
EXHIBIT (99)
[National Auto Finance Company, Inc. Logo]
Contact: Roy E. Tipton Keith B. Stein
President Vice Chairman
(800) 999-7535 (800) 533-8573
NATIONAL AUTO FINANCE COMPANY, INC.
ANNOUNCES REFERRAL AGREEMENT WITH U.S. BANK
BOCA RATON, Fla. (March 17, 1998) - National Auto Finance Company, Inc.
(Nasdaq/NM:NAFI) today announced that it has signed a referral agreement with
U.S. Bank, N.A. (NYSE:USB), formerly known as First Bank System, Inc., to serve
as the non-prime automobile financing source for U.S. Bank's extensive
automobile dealer network. U.S. Bank is the 15th largest financial institution
in the United States and has a dealer network of approximately 2,500 dealers in
20 Western and Midwestern states.
This agreement with U.S. Bank is the latest in a series of referral
relationships the Company has entered into through its Auto Credit Clearinghouse
division. The Company's first strategic alliance was created in April 1996 with
First Union National Bank of North Carolina, the sixth largest financial
institution in the United States. As a result of its highly successful First
Union alliance, the Company has entered into contractual relationships with
approximately 1,220 dealers in 12 First Union states. Unlike U.S. Bank's dealer
network, First Union's dealer network is concentrated along the Eastern
Seaboard. The Company also has referral arrangements with Amcore Bank in
Illinois, Community Bank in California, First Federal Savings Bank, N.A. in
Illinois, Team Car Sales (a division of Team Rental Group, the owner of Budget
Rent-A-Car) and The Rock Island Bank, N.A. in Illinois. The Company anticipates
further expansion of its referral program in the future with the addition of
other financial institutions and large dealer groups.
Gary L. Shapiro, Chairman and Chief Executive Officer of National Auto
Finance Company, stated, "The referral and marketing alliance with U.S. Bank is
a tremendous opportunity for the Company. It creates another strong distribution
channel through which National Auto Finance may
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NAFI Announces Referral Agreement with U.S. Bank
Page 2
March 17, 1998
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access new dealers. In addition, the markets served by U.S. Bank and its dealer
network are generally new markets for the Company and do not overlap with any of
the existing areas we currently service through our other large financial
institution alliance with First Union. While it is too early to determine how
much increased loan volume ultimately will be achieved from this new alliance,
we believe that loan volume may increase annually by up to 50%. We also view the
alliance with U.S. Bank, one of the top financial institutions in the country,
to be a gratifying endorsement of the Company and its future."
The Company also reported that its independent auditor is continuing to
review emerging issues under FAS No. 125 that may affect the Company's
accounting policies and the related valuation of certain of the Company's
securitization assets. Final results are expected to be reported by the end of
March.
National Auto Finance is a specialized consumer finance company engaged in
the purchase, securitization and servicing of automobile loans primarily
originated by manufacturer-franchised automobile dealers for non-prime
consumers. The Company markets its products and services to dealers through the
efforts of its direct sales force and through strategic referral and marketing
alliances with financial and other institutions that have established
relationships with dealers. The Company has contractual relationships with
approximately 2,140 dealers in 30 states.
This news release contains statements that are forward-looking statements
within the meaning of applicable federal securities laws and are based upon the
Company's current expectations and assumptions, which are subject to a number of
risks and uncertainties, which could cause actual results to differ materially
from those anticipated. Primary factors that could cause actual results to
differ include the availability of financing on terms and conditions acceptable
to the Company, the ability of the Company to securitize its finance contracts
in the asset-backed securities market on terms and conditions acceptable to the
Company, and changes in the quality or composition of the serviced loan
receivable portfolio. Certain of these as well as other factors are described in
more detail in the Company's Annual Report on Form 10-K for the year ended
December 31, 1996, and in certain other reports filed by the Company with the
Securities and Exchange Commission in fiscal years 1997 and 1998.
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