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Principal Capital Group: Principal Capital Group, Inc. Signs Integrity Funding Trust I as a New Structuring Client

^{Published on 2008-12-08 08:31:47 - Market Wire}
 

BEVERLY HILLS, CA--(Marketwire - December 8, 2008) - Management of Principal Capital Group, Inc. (OTCBB: [ PCGI ]) announced today the addition of Integrity Funding Trust I to its growing list of emerging market companies either requiring next stage capital or entities being structured under specific state rules as single purpose business trust. Under the terms of the agreement, Principal Capital Group, Inc. will be responsible for the preparation of preliminary funding documents in relation to the issuance of $2,500,000,000.00 in capital securities. The securities will be sold in $25,000,000.00 tranches and carry a 10 year term. They are also responsible for arranging funding agreements from AAA insurance companies, to purchase guaranteed insurance contracts (GIC) or funding certificates from AAA rated FDIC insured financial institutions to purchase guaranteed investment certificate(s) / contracts (GIC). PCGI will also be responsible for obtaining top grade ratings from Moody's Rating Services and or other industry standard rating providers. PCGI will market these capital securities to its growing list of qualified institutional buyers (QIB) which have $100,000,000.00 or more in assets under management. Under the terms of the agreement, the company will receive a 5% structuring fee and be responsible for investing the spread between the instrument yield and the income derived from the GIC. Provided the trust is completed and placed during the anticipated first quarter of 2009's close, PCGI should accrete approximately $6.31 per share and net $5.05 per share after fees and expenses respectively. The company anticipates booking this revenue during the second quarter of 2009. Principal Capital Group has initially prepared a tombstone in connection with the structuring agreement which it intends to circulate the second week of December 2008 to its existing shareholders.

George Melika, MBA, Principal Capital Group Investment Banker, stated, "We are delighted to work with the Integrity Funding Trust I to structure and deploy $2,500,000,000.00 in capital securities. Principal Capital Group has a strong deal flow that will enable us to deploy the capital and put it to work in senior secured collateralized notes from strong safe companies."

Interested parties that wish to know more about Integrity Funding Trust I and its offerings, please contact Mr. Melika at 800-881-3321 ext 94.

Principal Capital Group, Inc., is a holding company that holds a portfolio of assets in the financial industry including sector-specific Business Development Company ("BDC") 40 Act funds. A BDC is a public company which elects to become subject to sections 55 through 65 of the Investment Company Act of 1940. BDCs may raise money by investing in new ventures and by issuing shares of stock which become freely tradable and legend-free simply upon notice to the United States Securities and Exchange Commission ("SEC").

PCGI has the following web site: [ http://www.principalcapitalgroup.com ]. Interested parties may get up-to-date corporate information and shareholder information at this site.

About Integrity Funding Trust I

Integrity Funding Trust I is a special purpose entity that has been formed for the single purpose of issuing and administering the capital securities.

Forward-Looking Statement to follow:

Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission.