Press Release: Mego Financial Corp.
September 6, 201
LAS VEGAS, NV -- Mego Financial Corp. (Nasdaq: MEGO) announced yesterday that it had arranged an additional $22
million revolving line of credit with CapitalSource Finance LLC to be used for financing consumer receivables and
acquisition and development projects.
Commenting on today's news, Jerome J. Cohen, President of Mego Financial Corp. stated, ``We are extremely pleased
to secure an additional financing arrangement in what is currently a tight credit market for our industry. This
new commitment clearly reflects the strength and prospects of our timeshare business and the confidence that the
financial community has in us. It is also important to note that CapitalSource is a new lender to our wholly-owned
timeshare and land subsidiary, Preferred Equities Corporation, as well as our industry. This new facility will
be used for the financing of customer receivables associated with our flagship Las Vegas resort and possible expansion
in key geographic areas.''
In an unrelated transaction, the Company also reported that it had successfully completed the previously announced
negotiations to purchase the balance of the property at its Orlando resort consisting of 105 additional units,
a reception building, conference facilities and other amenities. This purchase brings the total resort to 267 suites.
The timeshare weeks are expected to generate up to $76.0 million in revenue. The Company commenced sales at its
Ramada Vacation Suites at Orlando resort in June 1997, marking its entry into the nation's #1 timeshare destination.
The resort, strategically located just 2 miles from Sea World, about 8 miles from Epcot Center and Walt Disney
World and 10 miles from Universal Studios Theme Park, now has 19 buildings containing 262 two-bedroom, two-bath
suites and five one-bedroom suites, all with kitchens. The property features a lake, pool, barbecue area and laundry
facilities, as well as a fitness room, playground, gift and sundry shop and game room. It is adjacent to the International
Golf Course.
Mr. Cohen noted, ``that Mego enjoys a strong position in the timeshare market as reflected in the Company's ability
to purchase the remaining units at its Ramada Vacation suites at Orlando resort and securing the new financing
in excess of $20 million.''
Mego Financial is a premier developer and operator of timeshare properties and a provider of consumer financing
to purchasers of timeshare interests and land parcels through its wholly owned subsidiary, Preferred Equities Corporation,
established in 1970. Mego Financial is headquartered in Las Vegas, Nevada and has properties it operates under
the banner of Ramada Vacation Suites in Nevada, New Jersey, Colorado, Florida and Hawaii. Mego Financial also owns
Central Nevada Utilities, serving a large portion of the fast-growing Palrump Valley, near Las Vegas.
This press release contains ``forward-looking statements'' within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors
which may cause actual results, performance or achievements of Mego Financial to be materially different from any
future results, performance or achievements express or implied by such forward-looking statements. Factors that
might cause such a difference, include, but are not limited to those discussed in the Management's Discussion and
Analysis of Financial Condition and Results of Operations in Mego Financial's Annual Report on Form 10-K for the
year ended August 31, 2000, and in the form 10Q for the quarter ended May 31, 2001, and subsequent documents filed
by Mego Financial Corp. with the Securities and Exchange Commission.
SOURCE: Mego Financial Corp.