Delta Financial Corp., Woodbury, N.Y., has entered into a letter of intent with an affiliate of Angelo, Gordon & Co. to receive new capital, according to a filing with the Securities and Exchange Commission.The letter of intent contemplates an aggregate financing of $100 million, including the amount outstanding under the $60 million residual financing facility established with Angelo Gordon in August. Delta will issue Angelo Gordon a new series of 10% senior secured notes with a maturity date of three years after issuance. The initial aggregate principal amount of the notes will be equal to $100 million, minus the principal amount outstanding under the August residual financing facility, as of the issuance date of the notes. If the transaction closes in December, such principal amount will be approximately $45-49 million. As a result, the principal amount on the new notes will be $51 million to $55 million. If the transaction closes as planned, Angelo Gordon will be the beneficial owner of approximately 61.4% of Delta's outstanding common stock, and approximately 66.5% of the outstanding stock if it exercises all of its warrants. Delta can be found on the Web at http://www.deltafinancial.com.
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April 18