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EXHIBIT 99.1
[AAMES FINANCIAL CORPORATION LOGO]
Contact: James Huston
Investor Relations Department
Aames Financial Corporation
(323) 210-5311
FOR IMMEDIATE RELEASE
AAMES FINANCIAL CORPORATION ENTERS INTO $75 MILLION RESIDUAL FORWARD
SALE FACILITY RENEWS AND EXTENDS COMMITTED WAREHOUSE LENDING FACILITY AND
INCREASES CREDIT LIMIT BY $50 MILLION
LOS ANGELES, CALIFORNIA, SEPTEMBER 5, 2000 - AAMES FINANCIAL
CORPORATION (NYSE: AAM), a leader in subprime home equity lending, today
reported that it has entered into a residual forward sale facility that will
enable the Company to sell up to $75.0 million of its residual interests for
cash in future securitizations through September 2002. The Company also
announced that it had extended the term of one of its committed warehouse
facilities previously scheduled to expire in October 2000 to October 2001 and
increased the maximum credit limit of that facility by $50.0 million to $300.0
million.
"The residual forward sale facility will eliminate the negative cash
flow traditionally experienced by the Company in securitizations. By increasing
the Company's access to the securitization market, the facility provides the
Company additional flexibility in its loan disposition strategy of
securitizations and whole loan sales enhancing its ability to take advantage of
market conditions," said A. Jay Meyerson, the Company's Chief Executive Officer.
"The increase in the warehouse facility will provide additional liquidity for
the Company to fund its retail and broker loan production."
Meyerson added that the Company entered into the residual forward sale
facility with an affiliate of Capital Z Financial Services Fund II, L.P., the
controlling partner of the Company's largest stockholder and that the Company
expects to execute its first transaction under the residual sale facility later
this month in connection with a planned securitization.
Aames Financial Corporation is a leading home equity lender, and at
June 30, 2000 operated 100 retail Aames Home Loan offices and 7 wholesale loan
centers nationwide.
From time to time the Company may publish forward-looking statements
relating to such matters as anticipated financial performance, business
prospects and similar matters. The Private Securities Litigation Reform Act of
1995 provides a safe harbor for forward-looking statements. In order to comply
with the terms of the safe harbor, the Company notes that a variety of factors
could cause the Company's actual results and experience to differ materially
from the anticipated results or other expectations expressed in the Company's
forward-looking statements. The risks and uncertainties that may affect the
operations, performance and results of the Company's business include the
following: negative cash flow and continued access to outside sources of cash to
fund operations; dependence on funding sources; third party rights to terminate
mortgage servicing; high delinquencies and losses in the Company's
securitization trusts; prepayment risk; changes in interest rates; basis risk;
prolonged interruptions or reductions in the secondary market for mortgage
loans; timing of loan sales; dependence on broker network;
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competition; concentration of operations in California and Florida; economic
conditions; contingent risks on loans sold; government regulation; changes in
federal income tax laws; ability to pay dividends and the concentrated ownership
of the Company's controlling stockholder. For a more complete discussion of
these risks and uncertainties, see "Item 7. Management's Discussion and Analysis
of Financial Condition and Results of Operations - Risk Factors" in the
Company's Annual Report on Form 10-K and 10-K/A for the fiscal year ended June
30, 1999 and "Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations - Risk Factors" in Form 10-Q for the quarter
ended March 31, 2000, and subsequent Company Filings with the United States
Securities and Exchange Commission.
