New Century Announces Stockholder Approval of Proposed REIT Conversion
September 15 2004 - 2:36PM
PR Newswire (US)
New Century Announces Stockholder Approval of Proposed REIT
Conversion Company's Common Stock to Trade on the New York Stock
Exchange IRVINE, Calif., Sept. 15 /PRNewswire-FirstCall/ -- New
Century Financial Corporation (NASDAQ:NCEN), one of the nation's
largest non-prime mortgage finance companies, announced that at its
annual meeting of stockholders held today its stockholders voted to
approve the proposal to restructure the company to allow it to
qualify as a real estate investment trust (REIT) for U.S. federal
income tax purposes. "As a REIT, we believe we will be in a better
position to achieve our long-term growth objectives, diversify our
revenues in a more tax-efficient manner and increase stockholder
value," said Robert K. Cole, chairman and chief executive officer.
"We thank our stockholders for supporting this historic
transaction, which we expect to complete in October." New Century
also announced that shares of common stock of New Century REIT,
Inc., an entity New Century recently formed in connection with the
REIT transaction to continue and expand its business, have been
approved for listing on the New York Stock Exchange under the
symbol "NEW." About New Century New Century Financial Corporation
is one of the nation's largest non-prime mortgage finance
companies, providing first and second mortgage products to
borrowers nationwide through its operating subsidiaries. New
Century is committed to serving the communities in which it
operates with fair and responsible lending practices. To find out
more about New Century, please visit http://www.ncen.com/. Safe
Harbor Regarding Forward-Looking Statements Certain statements
contained in this press release may be deemed to be forward-looking
statements under federal securities laws and New Century intends
that such forward-looking statements be subject to the safe-harbor
created thereby. Such forward-looking statements include, but are
not limited to, (i) New Century's belief that as a REIT it will be
in a better position to achieve its long-term growth objectives,
diversify its revenues in a more tax-efficient manner and increase
stockholder value, and (ii) New Century's expectations regarding
the timing of the completion of its conversion to a REIT and its
ability to complete such conversion. New Century cautions that
these statements are qualified by important factors that could
cause actual results to differ materially from those reflected by
the forward-looking statements. Such factors include, but are not
limited to, (i) the condition of the U.S. economy and financial
system, (ii) the interest rate environment, (iii) the stability of
residential property values, (iv) the potential effect of new state
or federal laws or regulations, (v) the effect of increasing
competition in New Century's sector, (vi) New Century's ability to
maintain adequate financing facilities, (vii) the outcome of
litigation or regulatory actions pending against New Century, and
(viii) the satisfaction or, where permitted, waiver of the
conditions specified in the agreement and plan of merger that is
attached as an annex to the registration statement on Form S-4, as
amended, filed with the Securities and Exchange Commission by New
Century REIT, Inc. Additional information on these and other
factors is contained in New Century's Annual Report on Form 10-K,
as amended, for the year ended December 31, 2003, and its other
periodic filings with the Securities and Exchange Commission and
also in the registration statements on Form S-3 and S-4, as
amended, filed with the Securities and Exchange Commission by New
Century REIT, Inc. New Century assumes no obligation to update the
forward-looking statements contained in this press release.
DATASOURCE: New Century Financial Corporation CONTACT: Carrie
Marrelli, VP, Investor Relations, +1-949-224-5745, or Erin Freeman,
VP, Corporate Communications, +1-949-862-7624, both of New Century
Financial Corporation Web site: http://www.ncen.com/
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