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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
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Date of Report: December 26, 1996
TFC ENTERPRISES, INC.
(Exact name of Registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
1-11121 54-1306895
(Commission File Number) (I.R.S. Employer Identification No.)
5425 Robin Hood Road, Suite 101B
Norfolk, Virginia 23513
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (757) 858-1400
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ITEM 5. OTHER EVENTS
A press release announcing the agreement on a new primary Credit
Facility with it's primary lender, General Electric Capital Corporation
-- Exhibit 99.12
The exhibits on the accompanying Exhibit Index are filed or
incorporated by reference as part of this Form 8-K and the Exhibit
Index is incorporated herein by reference.
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TFC ENTERPRISES, INC.
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.
TFC ENTERPRISES, INC.
(Registrant)
By: DAVID W. KARSTEN
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Date: December 30, 1996 David W. Karsten
VP, Treasurer, and CFO
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Exhibit 99.12
CONTACT: DAVID W. KIARSTEN TFC ENTERPRISES, INC.
757-858-4054 NEWS RELEASE
*FOR IMMEDIATE RELEASE*
TFC ENTERPRISES ANNOUNCES AGREEMENT ON NEW PRIMARY CREDIT FACILITY
NORFOLK, VA, December 26, 1996 /PRNewswire/ -- TFC Enterprises, Inc.
(NASDAQ: TFCE) today announced that its subsidiary The Finance Company (TFC)
had executed a new Loan and Security Agreement (LSA) with its primary lender,
General Electric Capital Corporation (GECC), for an extension of its credit
facility. The new amended and restated LSA runs through December 31, 1998, and
provides a $150 million credit line to TFC. TFC is currently using
approximately $74 million of this facility. The agreement also grants GECC
warrants to purchase approximately 560,000 shares of common stock, which
represents 5% of the outstanding shares of TFC Enterprises, Inc., at $2.00 per
share over a 4-year period.
"We are extremely pleased with this new agreement" said Robert S.
Raley, Chairman and CEO of TFC Enterprises. He added that "this will provide
the funding that gives the company the opportunity to achieve its business plan
for 1997 and 1998."
Additionally, the Company announced that its subsidiary First Community
Finance (FCF) is in the process of negotiating a new credit facility of $15
million to help fund its rapidly growing operations. Although at this stage the
company cannot offer any
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assurance that this new facility will be established, it is encouraged by the
progress of the negotiations. The Company also announced that it is continuing
negotiations with its other two principal lenders regarding the terms of
existing forbearance agreements. The Company hopes that the signing of the GECC
agreement will help to resolve similar issues with these other lenders.
In addition to historical information, this press release contains
forward looking statements that are subject to risks and uncertainties that
could cause the Company's actual results to differ materially from those
anticipated in these forward looking statements. Readers are cautioned not to
place undue reliance on these forward looking statements, which reflect
management's current analysis. For example, during 1997 the Company's
operations could be materially adversely affected if interest rates were to
rise, if credit experience deteriorated, or if the Company were to face
increased competition.
TFC Enterprises, Inc., through its wholly-owned subsidiary The Finance
Company specializes in purchasing and servicing installment sales contracts
originated by automobile and motorcycle dealers. Through First Community
Finance, Inc., another wholly-owned subsidiary, TFC Enterprises, Inc. is
involved in the direct origination and servicing of small consumer loans. Based
in Norfolk, VA, TFC Enterprises, Inc., also has offices in Dallas, TX;
Jacksonville, FL; San Diego, CA; and throughout Virginia and North Carolina.
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