Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Chevway Corp. Deal - Lehman Brothers Collection

Chevway Corp.

Company DealChevway Corporation: sale as of January 25, 1968, of 1,204,000 shares of common stock and $796,000 6% subordinated promissory notes
Transaction TypeCommon Stock / Subordinated Promissory Notes
Deal DescriptionChevway Corporation used the net proceeds from this transaction to purchase vechicles to lease to others and to provide a capital base, which it anticipated would permit it to borrow substantially greater amounts to finance the purchase of additional vehicles. Any additional funds may have been invested in short-term securities, including obligations issued or guaranteed by the U. S. government. The company also intended to use a portion of the proceeds for the following purposes: payment of organization expenses, repayment of loans made by certain Chevrolet dealers, two of whom were directors of the company, payment for the assets of Fleetway Systems, Inc., and Sam Lee Associates, Inc., and payment of operating expenses during the initial year of operations, to the extent that operating revenues were not sufficient to meet such expenses.
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