Magazine article American Banker

TRM Secures New Financing

Magazine article American Banker

TRM Secures New Financing

Article excerpt

TRM Corp., which raised worries last month that its inability to service its loans could put it out of business, says it has a tentative deal to refinance them.

Chief executive and president Jeffrey F. Brotman said Thursday that the deployer of automated teller machines had signed a letter of intent with Bank of America Corp. for refinancing. The new rate would "not be significantly higher than the interest rate that we're paying" now under a forbearance arrangement, he said.

He spoke during a conference call on TRM's first-quarter results.

In April, its auditor, PricewaterhouseCoopers, reported in a Securities and Exchange Commission filing that TRM's net loss in 2005 left it unable to meet its debt, and that it would probably remain so this year. That debt could therefore be callable, and if it were called, the company might be unable to "continue as a going concern," PricewaterhouseCoopers said.

Reed A. Anderson, an analyst with Miller Johnson Steichen Kinnard, said TRM's ability to secure financing at a rate comparable to what it is paying now shows that "there's still a high degree of cash flow to their core business, so you don't have to be concerned today that this company is not going to be surviving."

TRM, of Portland, Ore., reported a first-quarter net loss of $1.5 million, versus net income of $1.7 million in the same quarter last year. Gross sales fell 10%.

The company retained the investment bank Allen & Co. Inc. in January to advise it on "strategic alternatives. …

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