Finova bought back senior notes at steep discount in third quarter

New York, Nov. 12 - Finova Group Inc. said that it had repurchased senior notes at a sharp discount to their face value during the quarter ended Sept. 30.

Finova, a Scottsdale, Ariz.-based financial services concern which emerged from Chapter 11 in 2001, said in its 10-Q quarterly report to the Securities and Exchange Commission that during the third quarter it repurchased $100 million face amount of senior notes at a price of 49.875% or $49.9 million, plus accrued interest. The repurchase generated a net gain of $28.5 million ($50.1 million repurchase discount, partially offset by $21.6 million of unamortized fresh-start discount).

During the year-earlier 2002 third quarter, Finova repurchased $98.9 million face amount of senior notes at a price of 29.875% or for $29.6 million, plus accrued interest. The repurchase generated a net gain of $46.9 million ($69.4 million repurchase discount, partially offset by $22.5 million of unamortized fresh-start discount).

The company said that the latest repurchase reduced the face amount of the senior notes to $2.97 billion. Since August 2002, it has used $105.3 million of cash to repurchase senior notes with a face amount of $285 million.

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