On October 31, 2000 Allstate Financial Corporation issued the following press
release:
ALLSTATE FINANCIAL CORPORATION ANNOUNCES THE
COMPLETION OF SUBORDINATED NOTE EXCHANGE AND
INCREASE IN TANGIBLE BOOK VALUE PER SHARE
McLean, VA, October 31, 2000 - Allstate Financial Corporation ("Allstate" or the
"Company") (OTC: ASFN) announced it has completed on October 26, 2000 the
exchange (the "Exchange") of $4,331,000 of its 10% Convertible Subordinated
Notes (the "Notes") due September 2003 and $578,970 of accrued interest into
common stock. The Company stated over 94% of the Notes outstanding principal was
exchanged resulting in the issuance of 5,168,388 shares of its common shares
valued at $0.95 per share.
The Company stated that after the Exchange shareholders' equity increased to
approximately $5.23 million as of September 30, 2000 on a pro forma basis. The
Company also indicated there are now 7,668,004 common shares outstanding, of
which 74% are owned Value Partners, Ltd. Tangible book value per share increased
to $0.70 per share on a pro forma basis as of September 30 compared with $0.17
at June 30, 2000. Additionally, the Company reported it has redeemed the
remaining $357,000 of its variable rate convertible subordinated notes due
September 2000.
David W. Campbell, Chairman of the Board stated "the Exchange fortified the
Company's financial position by the addition of $ 4.8 million to shareholder
equity and the reduction of future interest expense by approximately $433,000
annually." He also noted "the Exchange is integral to the Company's long term
reorganization plan, including the recently announced acquisition of Harbourton
Financial Corporation, which is expected to close on or about November 30,
2000."
This press release may contain various "forward-looking statements," within the
meaning of Section 27A of the Securities Exchange Act of 1934, as amended, that
represent Allstate's expectations or beliefs concerning future events. Such
forward-looking statements are about matters that are inherently subject to
risks and uncertainties. Factors that could cause actual results or performance
to differ from the expectations expressed or implied in such forward-looking
statements include the closing of the Harbourton merger, changes in the timing
and amount of earning assets which may be originated by the Company or by
Harbourton, changes in revenue and expense trends (including trends affecting
charge-offs) of Allstate or Harbourton, changes in Allstate's or Harbourton's
markets and changes in the economy (particularly in the markets served by
Allstate or Harbourton). Such factors are discussed in detail in Allstate's
filings with the U.S. Securities and Exchange Commission.
PHONE: (703) 883-9757
CONTACT: David W. Campbell, ext. 18
[email protected]
C. Fred Jackson, ext. 16
[email protected]
