SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
the Securities and Exchange Act of 1934
May 15, 1997
Date of Report (Date of earliest event reported)
First Merchants Acceptance Corporation
(Exact name of registrant a specified in its charter)
Delaware 0-24686 36-3759045
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
570 Lake Cook Road 60015
(Address of principal executive offices) (Zip Code)
847-948-9300
(Registrant's telephone number)
Item 5. Other Events.
On May 15, 1997, First Merchants Acceptance Corporation (the "Registrant")
issued a press release, a copy of which is attached as Exhibit 99.1 to this
Form 8-K and incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit 99.1: Press Release issued by First Merchants Acceptance
Corporation on May 15, 1997.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
First Merchants Acceptance Corporation
By: s/Norman Smagley
Norman Smagley
Senior Vice President and Chief Financial Officer
Dated: May 15, 1997
EXHIBIT INDEX
Sequentially-
Exhibit Numbered
No. Description Page
99.1 Press Release issued by First Merchants
Acceptance Corporation May 15, 1997...........................
FOR IMMEDIATE RELEASE Contact:
Norman Smagley
First Merchants Acceptance Corp.
(847) 267-8777
or
Larry Parnell
Amen & Associates
(212) 448-4257
First Merchants Completes $50 Million Loan Sale
Estimates 1996 Restatement
DEERFIELD, IL - May 15, 1997 - First Merchants Acceptance Corporation
(NASDAQ:FMAC), today announced that it had completed the sale of $50 million of
existing sub-prime auto finance loans to Greenwich Capital Markets, Inc. The
proceeds from the sale were used to pay down borrowings under the Company's bank
syndicated line of credit.
"This transaction represents the first step in implementing the comprehensive
financing package announced last week. It is our expectation that the $50
million of loans, together with other recent loan production, would be packaged
by Greenwich Capital for a future securitization. Upon completion of the
securitization, the Company would have the benefit of the servicing spreads on
all the loans securitized, including those sold to Greenwich Capital. We are
very pleased with how quickly Greenwich Capital has responded to our short term
financing needs", said Rick Uhl, Co-Chief Executive Officer of First Merchants
Acceptance Corporation.
Co-Chief Executive Officer Bill Plamondon reported, "The addition of Greenwich
Capital as our financial partner enables First Merchants to continue to pursue
its goal of becoming the number one automobile specialty finance company. We
are moving quickly to streamline our organization and processes to ensure faster
and more consistent responses to our dealer customers."
Commenting on the Company's progress in completing the restatement of the
financial statements for 1996, and finalizing results for first quarter 1997,
Senior Vice President and Chief Financial Officer Norman Smagley said, "Results
for these periods are expected to be released by the end of June. Our current
estimate is that restated net earnings for 1996 will be between $0.50 and $0.70
per share, versus the $1.56 originally reported." Smagley also said, "No one
should rely on either the previously published 1996 financial statements, or the
related independent auditors' report."
First Merchants is a national specialty finance company, primarily engaged in
financing the purchase of used automobiles by consumers who have limited access
to traditional sources of credit. The Company acquires dealer-originated retail
installment contracts from franchised and independent automobile dealers and
financial institutions in 37 states.
###
<PAGE>
Safe Harbor Language
This press release contains various forward-looking statements and information
that are based on management's beliefs as well as assumptions made by and
information currently available to management, including statements regarding
future economic performance and financial condition, liquidity and capital
resources, and management's plans and objectives. Such statements are subject to
various risks and uncertainties which could cause actual results to vary
materially from those stated. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those anticipated, estimated, expected or projected.
Such risks and uncertainties include the availability of financing on terms and
conditions acceptable to the Company, the ability of the Company to securitize
its finance contracts in the asset-backed securities market on terms and
conditions acceptable to the Company, changes in the quality or composition of
the serviced finance contract receivable portfolio, and the ability of the
Company to consummate its previously announced proposed financing arrangements
with Greenwich Capital Markets, Inc. Certain of these as well as other risks
and uncertainties are described in more detail in the Company's Annual Report on
Form 10-K for the year ended December 31, 1996. The Company undertakes no
obligation to update any such factor or to publicly announce the result of any
revisions to any of the forward-looking statements contained herein to reflect
future events or developments.
