Press Release: The FINOVA Group Inc.
November 3, 2000
SCOTTSDALE, AZ -- The FINOVA Group Inc. (NYSE: FNV) yesterday announced that it is continuing its evaluation of
strategic alternatives, including alternatives for addressing the company's credit facilities.
``The board, management and the company's investment banker, Credit Suisse First Boston, continue to pursue potential
opportunities regarding a sale or significant equity infusion. In addition, FINOVA has begun to implement a new
strategic direction that will focus on core specialty niche businesses'', said FINOVA Chairman John Teets.
Earlier this year, FINOVA sold its Commercial Services and Harris Williams & Co. lines of business, which improved
liquidity. Other lines of business are being discontinued and offered for sale, including Corporate Finance, Business
Credit, Growth Finance and Distribution and Channel Finance. Proceeds from the divestiture of businesses will be
used to enhance liquidity and reduce FINOVA's debt obligations. The company said it is also trimming operating
expenses to reflect the disposition of these business units.
Chief Executive Officer Matt Breyne said, ``FINOVA continues to have adequate financial resources to satisfy its
obligations and fund operations. Disposition of businesses or assets represents the initial steps of a plan under
development for dealing with $1.6 billion of principal payments due in May 2001 under the company's credit facilities.
FINOVA has engaged Jay Alix & Associates, a nationally recognized financial consulting firm, to assist in connection
with the development of strategic and financial planning, including re-negotiation of its bank debt.''
The FINOVA Group Inc., through its principal operating subsidiary, FINOVA Capital Corporation, is one of the nation's
leading financial services companies focused on providing a broad range of capital solutions primarily to midsize
business. FINOVA is headquartered in Scottsdale, Ariz., with business development offices throughout the U.S. and
London, U.K., and Toronto, Canada. For more information, visit the company's website at www.finova.com.
This news release contains forward-looking statements such as predictions or forecasts. FINOVA assumes no obligation
to update those statements to reflect actual results, changes in assumptions or other factors. The forward-looking
statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results
to differ materially from those projected. Those factors include FINOVA's ability to address its financing requirements
in light of its existing debt obligations and market conditions; pending and potential litigation related to charges
to earnings; the results of efforts to implement FINOVA's business strategy, including the ability to successfully
conclude its evaluation of strategic alternatives; the ability to attract and retain key personnel and customers;
conditions that adversely impact FINOVA's borrowers and their ability to meet their obligations to FINOVA; the
adequacy of FINOVA's loan loss reserves and other risks detailed in FINOVA's SEC reports, including page 15 of
FINOVA's 10-K for 1999.
SOURCE: The FINOVA Group Inc.