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): June 23, 1999
Commission File Number: 0-19822
LITCHFIELD FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-3023928
State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
430 MAIN STREET, WILLIAMSTOWN, MA 01267
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (413) 458-1000
(Former name, former address and former fiscal year,
if changed since last report)
Item 5: Other Events:
Attached is the press release issued by the company on June 23, 1999
WILLIAMSTOWN, Massachusetts, (June 23, 1999) - Litchfield Financial
Corporation (NASDAQ/LTCH) announced today that it has acquired Ironwood
Acceptance Company, LLC. Ironwood, located in Scottsdale, Arizona,
specializes in the purchasing, servicing and liquidation of municipal tax
lien certificates. Litchfield acquired 100% of the outstanding membership
interests of Ironwood for approximately $2.3 million, with one third paid in
cash, and the remaining two thirds paid in Litchfield stock over a two-year
period.
Randy Stratton, President and CEO of Litchfield commented, "This acquisition
is in keeping with our business strategy of identifying and lending money to
smaller finance companies in niche businesses with strong, experienced
management. After two solid years of experience with Ironwood, and
performance that has been consistent with our expectations, we decided that
it made good business sense to expand the relationship with them in a
mutually beneficial way. This acquisition will enable us to increase our
presence in the tax lien business, while providing Ironwood with sufficient
capital for expansion."
Mr. Stratton added, "It has been our strategy to view transactions of this
nature as an opportunity to further reduce the portion of our revenues
derived from the gain on sale of loans. So while this transaction would have
been modestly accretive in 1999, and more so in 2000, we'll take this
opportunity to further reduce our gain on sale as a percentage of our
revenues, instead."
Ironwood will become a subsidiary of Litchfield, and its nine employees will
continue to operate out of Scottsdale, Arizona. Peter Reardon will continue
to serve in his present position as President of Ironwood. The management of
Ironwood has been successfully purchasing and managing tax liens for over
eight years and is currently purchasing tax lien certificates, through
auctions and over the counter sales, in twelve states.
Mr. Stratton noted, "Tax liens will help us further diversify our half
billion dollar serviced portfolio. These investments have small balances,
high yields and are well collateralized and highly secure. These
characteristics make tax liens complimentary to our existing consumer land
and timeshare loans, hypothecation loans and acquisition and development
loans."
Litchfield is a diversified finance company that provides financing to
creditworthy borrowers for assets not typically financed by banks. The
company provides such financing by making loans to businesses secured by
consumer receivables or other assets and by purchasing consumer loans. To
learn more about Litchfield, visit our website at www.ltchfld.com.
Except for the historical information contained or incorporated by reference
in this press release, the matters discussed or incorporated by reference
herein are forward-looking statements. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements of the Company, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the risk factors set forth
under "Risk Factors", as listed in the 1998 Annual Report on Form 10-K, as
well as the following: general economic and business conditions; industry
trends; changes in business strategy or development plans; availability and
quality of management; and availability, terms and deployment of capital.
Special attention should be paid to such forward-looking statements
including, but not limited to, statements relating to (i) the company's
ability to execute its growth strategies and to realize its growth objectives
and (ii) the Company's ability to obtain sufficient resources to finance its
working capital needs and provide for its known obligations.
Contact: Ronald E. Rabidou, Chief Financial Officer
Telephone: 413-458-1000 x 160 Fax: 413-458-1020 E-Mail
[email protected]
