SOURCE: Coach Industries

June 13, 2006 09:45 ET

Coach Industries Secures $25 Million Financing Facility With DaimlerChrysler

COOPER CITY, FL -- (MARKET WIRE) -- June 13, 2006 -- Coach Industries Group, Inc. (OTCBB: CIGI) ("Coach"), a holding company focused on providing financial services and specialty insurance products to Commercial Fleet Operators, announced today the company has secured an agreement with DaimlerChrysler Financial Services Americas, LLC for a $25 million revolving financing facility to support the financial services segments of the Company. The facility will provide for $1 million to be deployed toward a floor plan, with the remaining $24 million to be available for commercial fleet and daily rental fleet leases. The agreement is renewable annually and provides for capital at various rates that approximate prime plus one. There are multiple flexible programs for the commercial fleet services division, which will include terms of 36, 48, and 60-month lease programs.

Frank O'Donnell, Chairman and Chief Executive Officer of CIGI, states, "The $25 million financing through DaimlerChrysler Financial Services allows Coach to take an aggressive sales position in executing on our strategic objective of building a significant lease portfolio. We are very proud to have been chosen by DaimlerChrysler because of their outstanding worldwide reputation and also because our strategic partnership resolves any questions relating to our need for additional financing in this area of our business for the foreseeable future. Management is focused solely on growing the business profitably. Assuming the lease programs proceed as anticipated, the third and fourth quarter of 2006 should provide shareholders with a positive indication of this relationship through an improved financial trend in our lease business."

O'Donnell continues, "Our strategic relationship with DaimlerChrysler has important implications as we grow. While the extension of this $25 million facility demonstrates the confidence that DaimlerChrysler, a leader in the automotive and financial services industries, continues to have in the management team at Coach Industries, we hope this is just another step in our evolving growth process. The facility allows Coach Industries to leverage core competencies in procuring assets, and financing assets for our Commercial Fleet Operators and remarket those assets without dilution to our shareholder base. As we deploy this capital and deliver earnings to our shareholders, we would anticipate increasing the facility to continue leveraging our growing base of clients. While there is no guarantee that our financing will increase, it is our goal. This agreement with DaimlerChrysler is an important milestone in our development as a Financial Services Industry leader."

About Coach Industries Group, Inc.

Coach Industries Group, Inc. (OTCBB: CIGI) ("Coach") a holding company focused on providing financial services and specialty insurance products to Commercial Fleet Operators.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

Contact Information

  • Investor Contact:

    Alliance Advisors, LLC
    Mark McPartland
    (914) 244-0062
    Email Contact