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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
Date of Report (Date of earliest event reported): October 21, 1996
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THE FINOVA GROUP INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-11011 86-0695381
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
1850 NORTH CENTRAL AVENUE, P. O. BOX 2209, PHOENIX, ARIZONA 85004-2209
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 602/207-6900
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Item 5. Other Events.
The FINOVA Group Inc today announced the definitive agreement, by its
wholly-owned subsidiary, FINOVA Capital Corporation, to sell its
Manufacturing & Dealer Services business to Green Tree Financial
Corporation (NYSE: GNT).
Item 7. Financial Statements and Exhibits.
(c) Exhibits:
Exhibits Title
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28 Press Release of The FINOVA Group
Inc. dated October 21, 1996
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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 thereunto duly authorized.
THE FINOVA GROUP INC.
(Registrant)
Dated: October 21, 1996 By /s/ Bruno A. Marszowski
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Bruno A. Marszowski, Senior Vice President,
Chief Financial Officer and Controller
Principal Financial and Accounting
Officer/Authorized Officer
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EXHIBIT 28
Robert E. Radway Oct. 21, 1996
Senior Vice President
THE FINOVA GROUP INC. ANNOUNCES AGREEMENT TO SELL
SALES FINANCE UNIT TO GREEN TREE FINANCIAL CORPORATION.
PHOENIX, ARIZ., OCT. 21, 1996 - The FINOVA Group Inc. (NYSE:FNV) announced today
that it has entered into a definitive agreement to sell its Manufacturer &
Dealer Services business (MDS) to Green Tree Financial Corporation (NYSE:GNT)
for approximately $610 million, including the assumption of certain liabilities.
The purchase price reflects a premium of approximately $58 million over the book
value of MDS' assets. MDS is a leading provider of vendor-oriented sales finance
programs involving small-ticket leasing and financing products for commercial
end-user customers. The transaction, which is subject to usual closing
conditions, including compliance with the Hart-Scott-Rodino Act, has a scheduled
closing date of November 30, 1996.
Samuel L. Eichenfield, Chairman and Chief Executive Officer of FINOVA, said "the
announced sale of MDS represents an attractive opportunity for FINOVA to free up
equity -- at a premium -- that can be invested in our more niche-oriented core
commercial finance activities. As I have previously indicated, MDS'
small-ticket, process-oriented business falls outside of FINOVA's main thrust of
providing larger, structured financing accommodations to midsize businesses
throughout the U.S." Mr. Eichenfield went on to say that "a sale of MDS should
not have any meaningful impact on FINOVA's current or future earnings given the
variety of opportunities that are available to us in our core business and
should improve our overall operating ratio. It is our intention to utilize the
premium to be received in the transaction to establish reserves for customary
contingent liabilities being retained by FINOVA and to partially reduce existing
goodwill that resulted from FINOVA's acquisition of TriCon Capital Corporation
in 1994."
The FINOVA Group Inc. is a Phoenix-based major domestic commercial finance
company providing secured financing and leasing products from $500,000 to $35
million to midsize business. FINOVA also offers inventory financing programs to
manufacturers, distributors and dealers nationwide.
For more information about The FINOVA Group Inc., visit the company's Website at
www.finova.com.
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