Exhibit 99(b)
FOR IMMEDIATE RELEASE Contact:
Richard F. Latour
President and CEO Tel:
781-994-4800
MICROFINANCIAL INCORPORATED ANNOUNCES
A FINAL AMENDMENT TO ITS CREDIT AGREEMENT
- All Existing Lenders Participate in New Agreement -
Woburn, MA-- April 16, 2003-- MicroFinancial Incorporated (NYSE-MFI), a leader
in Microticket leasing and finance, today announced that it has secured an
amendment to its Credit Agreement and received permanent waivers under its
securitization facility.
The Company indicated that it has signed an agreement that amends its credit
facility and stabilizes the Company's relationship with its lenders. The
agreement also modifies the final maturity date to January of 2005.
The terms of the amended credit facility require the balance of the
approximately $110 million senior term loan be paid out over the next 22 months.
The loan will accrue interest at a rate of prime plus 2%, which will be payable
monthly. Certain financial covenants such as fixed charge coverage, debt to net
worth ratios, and minimum allowance balance requirements were eliminated.
The credit facility was originally entered into on August 2000. This amendment
replaces the Forbearance and Modification Agreement from the senior credit
facility that expired on February 7, 2003.
The Company also announced today that it has obtained a permanent waiver for its
securitization agreements that will waive each existing event of default
retroactively to the date the event of default occurred. It will also waive
specific future events of default under the terms of the securitization
agreements. This document will replace the temporary waiver which expired on
April 15, 2003.
Richard Latour, President and Chief Operating Officer stated, "We are pleased to
have secured a long-term amendment of our credit facility and securitzation from
both our bank group and our securitzation lenders. We believe that this provides
a solid foundation that will allow us to focus our attention on seeking a
financial partner as we actively consider various financing, restructuring and
strategic alternatives."
The Company filed its Form 10K with the Securities and Exchange Commission on
April 15, 2003.
About MicroFinancial
MicroFinancial Inc. (NYSE: MFI), headquartered in Woburn, MA, is a financial
intermediary specializing in leasing and financing for products in the $500 to
$10,000 range. The company has been in operation since 1986.
Statements in this release that are not historical facts are forward-looking
statements made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. In addition, words such as "believes,"
"anticipates," "expects," "views, " and similar expressions are intended to
identify forward-looking statements. The Company cautions that a number of
important factors could cause actual results to differ materially from those
expressed in any forward-looking statements made by or on behalf of the Company.
Readers should not place undue reliance on forward-looking statements, which
reflect the management's view only as of the date hereof. The Company undertakes
no obligation to publicly revise these forward-looking statements to reflect
subsequent events or circumstances. The Company cannot assure that it will be
able to anticipate or respond timely to changes which could adversely affect its
operating results in one or more fiscal quarters. Results of operations in any
past period should not be considered indicative of results to be expected in
future periods. Fluctuations in operating results may result in fluctuations in
the price of the Company's common stock. For a more complete description of the
prominent risks and uncertainties inherent in the Company's business, see the
risk factors described in documents the Company files from time to time with the
Securities and Exchange Commission.