LOS ANGELES - Foothill Capital Corp., a unit of a commercial finance company that has agreed to be acquired by Norwest Corp., has increased its commercial paper program and its bank credit facilities to $500 million from $460 million.
Kent W. Dahl, senior vice president and treasurer of Foothill Capital, said the increase in the commercial paper program would be used to fund asset growth. "We continue to have strong support from the banking and investment communities for our business strategy," Mr. Dahl said.
Foothill Capital is a unit of The Foothill Group Inc., a specialty financial services company which operates two tightly linked businesses; commercial lending and money management.
Foothill Capital Corp., provides asset-based financing to businesses throughout the United States.
The parent company's money management operation conducts business through institutional limited partnerships, seeking above average returns by investing in the debt instruments of companies in reorganization or in the process of restructuring.
At June 30, 1995, Foothill had total assets owned or under management of over $1.4 billion.
On May 15, the Foothill Group and Minneapolis-based Norwest signed a definitive merger agreement. The merger is expected to close in the fourth quarter.
Foothill Capital's commercial paper is rated A2 by Standard & Poor's Ratings Group, D2 by Duff & Phelps Credit Rating Co., and Fitch-2 by Fitch Investors Service Inc.
The bank credit facilities, with 26 banks, are used primarily to support Foothill Capital's outstanding commercial paper.
