Renovo Holdings Secures Funding, NVIDIA and Intel Collaborate on Graphics Cards, Fifth Third Bancorp Takes Measures to Improve Long-Term Profile

Strategic Insights -

Renovo Holdings, a publicly traded company on the Over-the-Counter Bulletin Board under the symbol RNVO, has received the first cash distribution of $5 million under the terms of the Standby Equity Distribution Agreement (SEDA) with Cornell Capital Partners, L.P. This agreement allows Renovo to draw down up to $5 million by issuing shares of common stock to Cornell. The funds are intended to support Renovo's growth and development in the commercial and residential restoration service markets.

Meanwhile, NVIDIA Corporation, a worldwide leader in graphics and digital media processors, has announced a marketing promotion with Intel Corporation to bundle NVIDIA GeForce 6600 GT graphics cards with Intel PCI Express motherboards. The bundles will be available to Intel's worldwide channel of 100,000 system builders through Intel Authorized Distributors and will run through December 31, 2004.

Fifth Third Bancorp, a diversified financial services company, has taken significant measures to improve its long-term profile and reduce the risks associated with increasing interest rates. The company has reduced its securities portfolio by approximately $6.5 billion, retired approximately $3.0 billion in long-term debt, and reduced other wholesale borrowings and interest rate swaps. This will result in pre-tax securities losses of approximately $80 million and pre-tax termination charges of up to $260 million in the fourth quarter.

Key Takeaways:

  • Renovo Holdings has received the first cash distribution of $5 million under the Standby Equity Distribution Agreement (SEDA) with Cornell Capital Partners, L.P.
  • NVIDIA Corporation has launched a marketing promotion with Intel Corporation to bundle NVIDIA GeForce 6600 GT graphics cards with Intel PCI Express motherboards.
  • Fifth Third Bancorp has reduced its securities portfolio by approximately $6.5 billion, retired approximately $3.0 billion in long-term debt, and reduced other wholesale borrowings and interest rate swaps.
  • The actions taken by Fifth Third Bancorp are expected to result in pre-tax securities losses of approximately $80 million and pre-tax termination charges of up to $260 million in the fourth quarter.
  • The company's fourth quarter earnings are expected to be in the range of $0.28 to $0.30 per diluted share, and full-year 2004 earnings are expected to be in the range of $2.65 to $2.68 per diluted share.

Statistics:

  • Renovo Holdings' standby equity distribution agreement with Cornell Capital Partners, L.P. allows for up to $5 million in funding.
  • NVIDIA Corporation has shipped more than 100 million graphics processing units (GPUs) to date.
  • Fifth Third Bancorp has $98.3 billion in assets and operates 17 affiliates with 1,010 full-service banking centers.
  • The company's securities portfolio reduction is approximately 20% from the September 30, 2004 balance.
  • Fifth Third Bancorp's long-term debt retirement is approximately $3.0 billion.

Sources:

  • M2 PressWIRE-3 December 2004-WallStreetGrapevine: WallStreetGrapevine.com "Spotlight" Alert - RNVO, NVDA, FITB
  • Renovo Holdings: http://www.renovoholdings.com
  • NVIDIA Corporation: http://www.nvidia.com
  • Fifth Third Bancorp: http://www.53.com