Aames Redeems Senior Notes

Aames Financial Corp., Los Angeles, has announced the redemption of $127.9 million principal balance of its 9.125% senior notes due November 2003 at par plus accrued and unpaid interest.The subprime home equity lender said the redemption represented all its outstanding senior notes. In connection with the redemption, Aames said it borrowed $74.1 million through a financing facility with Greenwich Financial Capital Products Inc. that is secured by certain residual assets and servicing advances. Aames also reported the redemption of $4.8 million of 5.5% convertible subordinated debentures due 2012. A. Jay Meyerson, the company's chief executive officer, said the redemptions were "a major milestone" in its efforts to improve its balance sheet by reducing nonrevolving borrowings and to improve its strategic position. "With the restrictions of the senior notes removed, the company has increased its corporate financial flexibility and its options for competing in the secondary and capital markets," he said. Aames can be found online at http://www.aames.net.