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) February 6, 1997
Mercury Finance Company
(Exact name of registrant as specified in charter)
Delaware 1-10176 36-3627010
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
100 Field Drive, Lake Forest, Illinois 60045
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 295-8600
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events.
On February 6, 1997, the registrant issued a press release, a copy of which
is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by
reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description of Document
99.1 Press release dated February 6, 1997 issued by the
registrant.
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 by the
undersigned hereunto duly authorized.
Mercury Finance Company
Date: February 6, 1997 By: /s/ Bradley Vallen
Its: AVP & Treasurer
FOR IMMEDIATE RELEASE CONTACT: Kate Connelly
Joe Kopec
The Dilenschneider Group
312-553-0700
MERCURY FINANCE SUSPENDS DIVIDEND,
PURSUES FINANCING, CONTINUES OPERATIONS
CHICAGO, Feb. 6, 1997 -- Mercury Finance Company (NYSE:MFN) announced today
that the board of directors has decided to suspend payment of the previously
announced dividend of $0.075 per share on Mercury common stock, which had a
record date of February 17 and a payment date of March 3.
The company has been unable to refinance an aggregate of $61 million in
matured commercial paper through February 5. An additional $127 million comes
due between now and February 14. As a result of previously disclosed events,
the company is in violation of its loan covenants.
Mercury also announced that it continued to pursue financing. "We are
currently in serious discussion with lenders with regard to a short-term
financing package," said William A. Brandt, president and chief executive
officer. It is expected that the funds from the short term financing will be
used exclusively for operating purposes and will not be available for paying
principal or interest on company debt.
Salomon Brothers, engaged by Mercury last week to advise on financial
matters, continues to work to arrange a long term financing package, as well as
to examine all capital raising alternatives in the course of its review.
Operations continue at all of the company's 280 locations nationwide. The
company is pursuing a financial strategy that is aimed at enabling operations to
continue and returning its financial status to a normal footing as quickly as
possible.
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