E-LOAN Announces Auto Loan Sale
05 Abril 2005 - 4:52PM
PR Newswire (US)
E-LOAN Announces Auto Loan Sale Major Financial Institution
Purchases Auto Loans from E-LOAN Auto Fund One, LLC, a Qualified
Special Purpose Entity of E-LOAN, Inc.; Transaction Increases
E-LOAN Cash Balance by $15 Million and Generates an Approximate
$2.5 Million Gain PLEASANTON, Calif., April 5
/PRNewswire-FirstCall/ -- E-LOAN(R) (NASDAQ:EELN), an online
consumer direct lender, today announced that on March 30, 2005 a
major financial institution purchased substantially all of the auto
loans held by E-LOAN Auto Fund One, LLC, a qualified special
purpose entity of E-LOAN, Inc. The unpaid principal balance of
these loans totaled approximately $651 million. E-LOAN, Inc.
received net cash proceeds from this transaction of approximately
$15 million and will record a first quarter 2005 gain on this
transaction of approximately $2.5 million. The gain represents the
excess of total proceeds received over the carrying value of
E-LOAN, Inc.'s retained interest in the purchased auto loans.
"Recent strong capital markets demand for auto loans enabled this
transaction and resulting gain," said Mark Lefanowicz, President
and Chief Executive Officer of E-LOAN, Inc. "While no formal
decision has been made, the $15 million cash infusion provides
flexibility to pursue options such as loan securitizations or a
potential repurchase of our common stock." E-LOAN, Inc. will
continue to fund vehicle loans under its existing vehicle warehouse
line of credit and will continue to sell funded loans to whole loan
purchasers for cash. While the specific credit facility used to
fund E-LOAN Auto Fund One's purchase of vehicle loans from E-LOAN,
Inc. terminated on March 30, 2005 with the closing of this
transaction, E-LOAN, Inc. intends to enter into a new credit
facility agreement by the middle of April 2005. E-LOAN Auto Fund
One retained approximately $2.1 million in assets, predominantly
delinquent and nonperforming vehicle loans (net of allowances for
loan losses). Effective March 30, 2005, E-LOAN Auto Fund One became
a consolidated subsidiary of E-LOAN, Inc. About E-LOAN, Inc. E-LOAN
is an online consumer direct lender dedicated to providing
borrowers across the credit spectrum with a more enjoyable and
affordable way to obtain mortgage, auto and home equity loans. By
making credit scores freely available to consumers and integrating
them with a suite of sophisticated advice tools, E-LOAN is
pioneering the nascent debt management advice category -- helping
consumers proactively manage their loan portfolios to lower their
overall borrowing costs. The company relentlessly advocates
eliminating the unnecessary processes, fees, hassle, haggle and
lack of transparency traditionally associated with the consumer
loan experience. Protecting consumers' financial privacy is a
paramount concern, prompting E-LOAN to implement industry leading
privacy practices and advocate strong consumer financial privacy
protection laws. In June 2004, an independent study conducted by
TRUSTe and The Ponemon Institute ranked E-LOAN as one of the top 20
most trusted companies for privacy in America. E-LOAN was the
highest ranked online financial services company to make the top
20. Consumers can log onto http://www.eloan.com/ or call
1-888-E-LOAN-22 to access E-LOAN's products, services and team of
dedicated loan and debt advice professionals. E-LOAN, Inc. is
publicly traded on the Nasdaq National Market under the symbol
EELN. From inception through December 2004, E-LOAN has originated
and sold over $24.1 billion in consumer loans. This news release
contains forward-looking statements based on current expectations
that involve risks and uncertainties. E-LOAN's actual results may
differ from the results described in the forward-looking
statements. Factors that could cause actual results to differ
include, but are not limited to, general conditions in the mortgage
and auto industries, interest rate fluctuations, and the impact of
competitive products. These and other risk factors are detailed in
E-LOAN's periodic filings with the Securities and Exchange
Commission. CONTACT: Laurie Azzano of Cosmo Public Relations,
+1-504-296-1349, or , for E-LOAN; or Tiffany Fox of E-LOAN,
Public/Investor, +1-925-847-6314, or . DATASOURCE: E-LOAN CONTACT:
Laurie Azzano of Cosmo Public Relations, +1-504-296-1349, or , for
E-LOAN; or Tiffany Fox of E-LOAN, Public/Investor, +1-925-847-6314,
or Web site: http://www.eloan.com/
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