FuelNation Inc (fka FLNT)

[jmhollen]

FuelNation Signs Term Sheet for First $80 Million of Bond Funding

DAVIE, Fla., Aug 14, 2002 (BUSINESS WIRE) -- FuelNation Inc. (OTCBB:FLNT) today announced they have signed a term sheet for the first $80 million of bond funding. The company finalized the capital raise of $10,500,000 to pay for the cost of issuance and the funds to guarantee the interest shortfall for the $330 million bond funding. The company submitted the formal application early last week and has signed the term sheet today. The length of the loan will be for a total of 18 years and amortized over 25 years. The estimated interest rate currently is 4% per annum.

Chris Salmonson, CEO of FuelNation stated: "All of the hard work is starting to pay off. The lender notified us that we should have the commitment in hand as early as Friday of this week. Funding should take place within approximately 60 days and we will be able to start our acquisition strategy immediately. We are very pleased that we were able to arrange the $10,500,000 to pay for the cost of issuance and the funds to guarantee the interest shortfall for the $330 million bond funding. We have agreed to issue the bonds in three series A, B, C, totaling $330 million. H&N LLC a fund based in Portland, Oregon will provide the shortfall letter of credit and the cost of issuance in the amount of $3,500,000 for the first Series A Bond. Shaikh Isa Mohammed Isa Alkhalifa will provide the shortfall letter of credit and the cost of issuance in the amount of $7 million Series B and Series C bond. We are very confident from this point forward FuelNation should be able to successfully fulfill our portion of the bond funding."

Salmonson goes on to say: "We are preparing the necessary documentation to start preparing two additional series of bonds in the amount of $250 million. Currently, we have submitted enough information on the acquisitions to the lender to qualify for an $80 million issuance on the first series."

CONTACT: FuelNation, Inc. Davie, Chris R. Salmonson, 954/587-3775 x102 Email: [e-mail]

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