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August 4, 2000
Orlando, FL
Contact: Wilma Williams, Investor Relations Manager
(407) 855-5500, extension 105
ORLANDO, FLORIDA (August 4, 2000) - Galaxy Foods Company (AMEX:GXY)
Galaxy Foods Company Expands Working Capital Facility
Galaxy Foods Company
(AMEX: GXY), a leading producer of nutritional, health-promoting dairy and dairy
related alternatives for the retail, foodservice and industrial markets, today
announced that it has expanded its existing credit facility with FINOVA Capital
Corporation to $13 million under a three-year working capital facility
agreement, floating at 10 basis points below the prime interest rate.
Galaxy
Foods will also reduce the interest rate on its existing $3.9 million
subordinated debt facility with FINOVA Mezzanine Capital, Inc. from 13.5% to
11.5%, saving the Company approximately $80,000 in debt service on this facility
annually. Galaxy Foods expects the
new facility to fund its working capital needs to support its growth up to $100
million in sales.
Frank
Monzo, V.P. & Portfolio Manager of FINOVA’s Corporate Finance division,
said: “Galaxy is an industry leader in the healthy food sector with an
impressive, growing product line, unique proprietary manufacturing methods and a
management team focused on quality and growth. FINOVA is pleased to support the
Company’s next phase of growth with this facility.”
Keith
A. Ewing, Chief Financial Officer of Galaxy Foods, stated, “In line with our
business plan, Galaxy is implementing programs to eliminate production capacity
constraints, expand brand recognition, and enhance product distribution.
Our agreement with FINOVA will allow Galaxy to continue to grow and
develop our business at terms that are favorable to the Company.”
Galaxy Foods Company is a leading producer of health-promoting dairy and dairy related alternatives for the retail, foodservice and industrial markets. The Company’s plant-based products are low or no fat (no saturated fat), have no cholesterol and no lactose and contain more vitamins and minerals than conventional dairy products. Galaxy products, available at health food stores and grocers, are part of the nutritional or functional food category, the fastest growing segment of the retail food market. Galaxy brand names include Veggie Milk™, Veggie Slices™, formägg®, Soyco®, Soymage®, Wholesome Valley™, and Lite Bakery®. For more information, please visit the Company’s Web site at www.galaxyfoods.com.
About
FINOVA
The FINOVA Group Inc. (NYSE:FNV), through its principal operating subsidiary, FINOVA Capital Corporation, is one of the largest and most successful financial services companies in the U.S. primarily focused on providing a broad range of capital solutions to midsize business. Headquartered in Scottsdale, AZ, with business development offices throughout the U.S. and in London, U.K., and Toronto, Canada, FINOVA offers a variety of financing accommodations through 18 business units, each with specific industry or product expertise.