Merc backs Reggie
07-18-2003 | 08:24 AM
#1
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Merc backs Reggie
WASHINGTON, N.C.--(BUSINESS WIRE)--July 18, 2003--Fountain Powerboat
Industries, Inc. (NASDAQ: FPWR) President and Chief Executive Officer Reginald
M. Fountain, Jr. announced the implementation of an $18 million long-term
financing arrangement with Bank of America, the proceeds of which are being
used by the company to refinance existing long-term debt, pay current
liabilities, and provide additional operating funds.
Fountain Powerboats has reported three consecutive quarters of operating
profit and is in the process of closing its fourth fiscal quarter ended on
June 30 during which it recorded strong sales. Mr. Fountain stated, "We
believe the results of our operations during fiscal 2003, combined with the
new financing, put us in a strong financial position going into our 2004
fiscal year."
The loan is secured by certain assets of Fountain Powerboats and Mr.
Fountain and has been guaranteed by Brunswick Corporation, a division of which
supplies marine engines used in the company's products.
Glad to see fountain get this loan to provide liquidy for the company and their dealers.
Industries, Inc. (NASDAQ: FPWR) President and Chief Executive Officer Reginald
M. Fountain, Jr. announced the implementation of an $18 million long-term
financing arrangement with Bank of America, the proceeds of which are being
used by the company to refinance existing long-term debt, pay current
liabilities, and provide additional operating funds.
Fountain Powerboats has reported three consecutive quarters of operating
profit and is in the process of closing its fourth fiscal quarter ended on
June 30 during which it recorded strong sales. Mr. Fountain stated, "We
believe the results of our operations during fiscal 2003, combined with the
new financing, put us in a strong financial position going into our 2004
fiscal year."
The loan is secured by certain assets of Fountain Powerboats and Mr.
Fountain and has been guaranteed by Brunswick Corporation, a division of which
supplies marine engines used in the company's products.
Glad to see fountain get this loan to provide liquidy for the company and their dealers.
07-18-2003 | 09:16 AM
#4
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Joined: Feb 2002
Posts: 6,656
Likes: 20
From: Lake Michigan
Interest rates are down and now is the time to borrow money for whatever.
Merc will some day own Fountain because they want the location...Lake X be done soon.
Merc needs Reggie, I'd bet that Fountain sold more Merc HP motors than any other.
Merc will some day own Fountain because they want the location...Lake X be done soon.
Merc needs Reggie, I'd bet that Fountain sold more Merc HP motors than any other.
07-18-2003 | 09:45 AM
#6
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Joined: Dec 2001
Posts: 3,904
Likes: 1
From: Iowa - Missouri
Um, I don't see too many guarantors on loans that do not have a stake in the company. I would have to think by this that Brunswick already has some ownership.
If they do not then what is their consideration for signing the guaranty and how could you enforce it in court if you received none? There is more to the story than meets the eye, maybe they do not have ownership, but then they must have some contract to purchase Fountain in place. Otherwise no consideration.
And yes, Fountain has in the past been Merc's biggest customer for motors with blue paint on them.
If they do not then what is their consideration for signing the guaranty and how could you enforce it in court if you received none? There is more to the story than meets the eye, maybe they do not have ownership, but then they must have some contract to purchase Fountain in place. Otherwise no consideration.
And yes, Fountain has in the past been Merc's biggest customer for motors with blue paint on them.
07-18-2003 | 04:39 PM
#9
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Originally posted by formulafastech
Reggie owns almost half (2.2 million of about 4.7 million outstanding) of Fountains stock. Depending on what their current debt is, I'd gues that Merc has first lienholder status on the buildings/land in NC. If they do own stock, its less than 5%, because it hasn't been reported. There were a bunch of stories a few years ago that Merc wanted to buy Fountain, without Reggie, but that they backed off because the public sees Reggie as Fountain boats
Reggie owns almost half (2.2 million of about 4.7 million outstanding) of Fountains stock. Depending on what their current debt is, I'd gues that Merc has first lienholder status on the buildings/land in NC. If they do own stock, its less than 5%, because it hasn't been reported. There were a bunch of stories a few years ago that Merc wanted to buy Fountain, without Reggie, but that they backed off because the public sees Reggie as Fountain boats
