January
26, 2001 Headlines---
Jim Lahti's & Richard Galtelli's "Affiliated" Merges with First Commerce
Leasing
Advanta Leasing--Closing is Not Smooth as
PR "Spin" Would Lead You to Believe
Royal
Bank of Canada/Centura Banks--Atlanta Connection-Loans and Leases On Line
Brokers Lament------
The
Chronological List is Up-dated
Affiliated
Corporate Services Merges With First Commerce Leasing
Affiliated Corporate
Services, (ACSI) a Lewisville, Texas-based leasing company, has merged with First
Commerce Leasing of Birmingham, Alabama, according to ACSI's Chairman, Richard
A. Galtelli.
Both companies will continue to operate under their established
names, but will be owned by a new entity, First Commerce Holdings.
ACSI
Chairman and CEO Richard A. Galtelli and President James R. Lahti will continue
in their current positions. Warren Hawkins of First Commerce will serve as president
of the holding company and will continue as president of First Commerce Leasing.
The move is considered to strengthen both entities as each party is bringing to
the table what will help each other in this marketplace.
ACSI, established
in 1982, will continue to specialize in providing small-ticket commercial equipment
financing to small and mid-size businesses, according to the principals. ACSI
has reportedly originated more than $40 million in equipment leases over the last
four years, and is expected to originate $18 million to $20 million during its
current fiscal year with the merger. They are also reportedly one of the largest
super brokers in the Southwest.
Mr. Galtelli has been very active on the
world wide web for a considerable time and considered an integral reason for the
success of Affiliated Leasing. Mr. Lahti is past-president of the United Equipment
Leasing Association and active at conferences with the National Association of
Equipment Lease Brokers. He is very popular. He is a very well-known Dallas Cowboy
fan, too.
Founded in 1983, First Commerce Leasing provides master lease
lines of credit ranging from $25,000 to $5 million to a variety of industries
in Alabama and Tennessee, resulting in an expected $35 million in business during
it current fiscal year. The company also offers a customized, private-label leasing
program to small community banks in Alabama and Tennessee under the name BancPartners
Leasing.
Reference
Advanta
The day we were notified of Adnanta's closing, Bill Beard, our
contact, was out of the office. We called Advanta's operation department and were
told that Advanta would fund any deal already docked, but none other. We reviewed
our approvals with them and were told only two would be funded, and only then
if we could have the docs to Advanta by today (Friday). We immediately faxed the
completed & signed docs to Advnata. Later in the day Advanta called back and told
us that they would not be funding any deals, even the ones they had earlier agreed
to fund. The person who called us late in the day to stop the funding was not
the same person who told us earlier in the day that they would fund them. Whether
or not there was a change in policy, or whether or not the first employee spoke
out of turn I don't know. It makes little difference.
I would also like
to take the opportunity to say that while it lasted, Advanta was a great company
to work with. Their people were friendly, courteous, & helpful, bending over backward
whenever possible to help us make a deal. Company closings are always messy affairs
with plenty of recriminations to go around. It's inevitable. From my perspective,
even with the last minute mix-up, Advanta and its people will be missed. I wish
them well and God's speed in finding new homes. May they all land on their feet,
and in better circumstances.
Ted Prichard, CLP
Smokey Mountain Funding,
Inc.
ted@smokeymountainfunding.com
( We have received similar stories,
but the senders do not want us to publish them or their names, fear of reprisals
from other funders, they say. There is also a report going around the internet
that employees received ample notice and severance. We have not been able to confirm
that. Two ex-employees wanted not to make any comment at all, leading us to further
believe the "internet rumor" was just another one of those "rumors" or "hoaxes,"
just as the one that John Grudin was going to leave the Oakland Raiders for Ohio
( it was fast and furious here in the S.F. Bay Area). Being born in New York City,
I am for the Giants, but my mother's family is from Baltimore, Maryland, so I
if the Ravens win---but today is dress down day and I am wearing my S.F.49er turtleneck
shirt. Go Niners!!! Forever!!! editor ).
Thank
You
Just wanted to thank you for keeping us all in touch with the news
in an easy to read format. In just a few minutes I can have a grasp of what is
going on out there, outside my office!!!
Where do you find the time to
do this everyday!
It is appreciated,
Rena Cole
Alta Financial
Corp.
rcole@altafinancialcorp.com
+ +
+
Kit,
You have developed a very useful and informative site!
Keep up the great work.
Ray Leone
Gramercy Leasing Services, Inc.
191 Post Road West
Westport, CT 06880
RAYLEONE@aol.com
+ +
+
Mr. Menkin,
Thank you for your clarification on Trinity Industries.
I enjoy your newsletter and respect your commitment to accuracy while still reporting
the news.
Trinity Capital Corporation is enjoying the opportunities that
the recent consolidation in the leasing industry has presented. We are celebrating
our 20th anniversary as a direct lender this February.
Thank you.
Nick Gibbens
National Sales Manager
Trinity Capital Corporation
ngibbens@trinitycapital.com
Brokers
Lament
Most recently a customer with whom I had done 3 leases with contacted
me regarding his displeasure with the companies who are servicing his leases,
namely ICON and Commerce Security. These companies came by the transaction through
the 'Funder' which I originally used and is no longer in business, Creative Funding.
The customer said that neither one of the customer service departments return
phone calls. Commerce has billed him after the due date only to say that they
were having computer problems and will waive the late fees only after he made
a phone call. ICON will never return phone calls and won't give him a straight
answer.
2 of the 3 leases have come due and he still hasn't gotten the
buy outs straighten out with ICON and he was wondering what kind of problems he
was going to have with Commerce.
He told me never to use his name as a
recommendation and that he thought that leasing was a terrible financial product.
When I assured him that everybody sells leasing (even GECC) much like the mortgage
market place, he said that he understands that but why are the collectors and
customer service rep's such idiots.
I even had problems with my Nations/Textron
customers who have told me that they would never lease equipment again. One of
my customers was told by Textron that their buy out was 25%. It reminds me of
the late 80's all over again. Hasn't anyone heard of a 3 tiered rate chart; $1.00,
10% & fmv.
I ask again, why would a customer want to use leasing and why
would they believe anything I had to say again if a transaction cannot end smoothly.
It appears that for some time now customer service has gone away. Somebody should
step up to the plate and offer some service. Maybe they would get more business
and everybody would benefit.
Vince Barauskas
Merrimac Leasing Corp.
Vlease@aol.com
Royal
Bank of Canada to acquire Centura Banks, Inc.
Acquisition will serve as
foundation for U.S. banking growth strategy
ROCKY MOUNT, NC, and TORONTO,
Jan. 26 /PRNewswire/ - Royal Bank of Canada (TSE, NYSE: RY) and Centura Banks,
Inc. (NYSE: CBC), headquartered in Rocky Mount, North Carolina, today announced
they have signed a definitive merger agreement by which Royal Bank will acquire
Centura.
Under the terms of the agreement, each share of Centura outstanding
will be converted into 1.684 shares of Royal Bank of Canada upon closing. The
indicated value of the transaction is US$2.3 billion (C$3.5 billion), based on
Royal Bank of Canada's closing share price on the TSE of C$51.80 (US$34.35) on
January 25, 2001.
The acquisition is subject to regulatory approval in
Canada and the U.S., approval from the shareholders of Centura Banks, Inc. and
other customary closing conditions. The transaction is expected to be completed
by mid-summer at which time Centura will adopt the name RBC Centura Banks, Inc.
In connection with the merger agreement, Centura Banks, Inc. has granted Royal
Bank a customary option to purchase a number of shares equal to 19.9 per cent
of its outstanding common stock under limited circumstances.
"Centura
has an experienced management team, strong customer and community orientation
and a corporate culture similar to ours," said John Cleghorn, chairman and chief
executive officer of Royal Bank of Canada. "The transaction is consistent with
our U.S. growth strategy, which is based on focused and manageable acquisitions.
Centura's approach to developing and maintaining customer relationships while
building size through acquisitions has successfully driven its own growth strategy.
We want to preserve and build on their success as we grow our personal and commercial
banking platform in the U.S.," said Cleghorn.
"This is an outstanding
opportunity for us to execute our successful retail banking model in one of the
most attractive markets in the United States. Centura's positioning as a full
line retailer of financial services provides the opportunity to create a strong
retail banking platform in the United States with considerable growth potential,"
noted James Rager, vice- chairman of Royal Bank of Canada, responsible for its
personal and commercial banking platform.
Commenting on the transaction,
Cecil W. Sewell, Jr., Centura chief executive officer said, "Royal Bank of Canada
has a stellar reputation and a corporate culture very similar to our own. They
offer us the best opportunity to preserve and strengthen this culture while realizing
our full potential of offering financial solutions that make a positive difference
in the lives of our customers."
On completion of the transaction, Sewell
will become chairman of RBC Centura Banks, Inc., and it is intended that he will
become a member of the board of directors of Royal Bank of Canada. H. Kel Landis,
currently president of Centura Bank, will become chief executive officer of RBC
Centura Banks, Inc.
The transaction provides the opportunity to integrate
key operations of RBC's existing U.S. consumer businesses. These include: Security
First Network Bank, based in Atlanta, the country's first and number one rated
Internet bank, and Prism Financial Corporation, a Chicago-based national retail
mortgage origination company with more than 1,100 loan officers and 180 offices
in 29 states. It also complements the businesses of Liberty Life Insurance Company
and Liberty Insurance Services Corporation, both based in Greenville, S.C. and
Minneapolis-based Dain Rauscher Corporation, a leading regional, full service
securities firm with 3,800 employees and a network of 90 offices in 27 states.
About Centura Banks, Inc.
An US$11.5 billion-asset financial services
company, Centura Banks, Inc. is based in Rocky Mount, N.C. Its 3,600 employees
provide a complete line of banking, investment, insurance, leasing and asset management
services to individuals and businesses in North Carolina, South Carolina and Virginia.
Centura's broad range of financial solutions is provided through Centura Highway,
the bank's multifaceted customer access system that includes more than 240 full-service
financial offices, telephone banking, an extensive ATM network, PC banking, online
bill payment and the bank's suite of Internet products and services. The bank
has client relationships with over 420,000 households (650,000 customers). For
more information, please visit www.centura.com.
About Royal Bank of Canada
Royal Bank of Canada (RY) is a diversified financial services company. It provides
personal and commercial banking, wealth management services, insurance, corporate
and investment banking, online banking and transaction processing on a global
basis. The company employs 50,000 people who serve 10 million personal, business
and public sector customers in North America and in some 30 countries around the
world. For more information, please visit www.royalbank.com.
The
List
Chronological Affiliated
Leasing, Lewistown,Texas (1/2001) Merges with First Commerce Leasing Finova
( 1/2001) Deal of Leucadia National to Invest $350 Million
in Finova falls apart 1/2001 laid off 90 employees, or
about 9 percent of its workforce, in an ongoing effort to cut costs. The company
continues to employ about 300 people in Phoenix and 940 nationwide. (12/2000)
out of market place, many problems, raises $250 MM, but
not enough ) (10/2000 Dow Jones headlines "Finova Stock
Falls As Buyout Hopes Wane 10/2000 Dow Jones notes stock falling and
problems at Finova 11/2000 Announces they will discontinue business, sell units
11/2000 Suspends Dividend 11/2000 Leucadia National to
Invest $350 Million in Finova 11/2000 reports $274 million
loss
Advanta Leasing (1/2001 Advanta ceases leasing business announcement
1/2001 Chris Ciarrocchi says
"goodbye" Mortgage Division
sold, re-affirms Leasing Division still for sale 9/2000
for sale, former prez now at eOriginals,others let go like Kaye Lee.)
Union
Bank, San Francisco ( 1/2001 Leasing curtailment/cutback 1/2001
Union Bank, Los
Angeles, no more lease purchasing,
not confirmed about S.F. yet )
El Camino Leasing, Woodland Hills, California
(1/2001) ( 1/2001 reportedly winding down, sold portfolio,
selling partner relationships, selling off all assets (10/2000 No longer taking
broker business 11/2000 struggling to stay in leasing
business, according to insider reports )
Saddleback Financial ( 1/2001)
Prez. Warren Emard anncounes "... still in business... We are still originating
business through vendors and directly to lessees. Does not accept broker business."
First Commercial Capital Corp ( 1/2001 to be acquired by TCF Leasing )
First International Bancorp ( 1/2001 ) to be acquired by UPS Capital First
State Bancorp, Albuquerque, N.M ( 3/2000 sold leasing
division-$64 million---)
LeaseExchange.com ( 1/2001 Closes Irving office,
cuts staff )
BSB Leasing ( 1/2001 Don Meyerson bought back the company
and they are back in business at 303-329-09227. Official
announcement to be made soon. They are notifying brokers to start sending
them business again. 12/2000 Don Meyerson says to be "re-born"11/2000 closed to
accepting new business.)
SierraCities (1/2001
VerticalNet Merger falls apart 1/16/01 Sells Off UK Assets, 7/2000 2nd quarter
loss, see report )
Preferred Capital (01/2000 Mark Seif confirms 12/2000
On the block. David Murray left 11/7 "didn't like letting
his friends go." )
Affinity Leasing, Washington ( 12/2000 to close
and concentrate on Financial Pacific biz ) Banc One Leasing
( 12/2000 Lays Off 60, Closes 5 offices )
Bayview Capital ( 12/2000
announces $17 million loss/later does not issue dividend )
Bombadier
( 12/2000 reported having leasing problems, not confirmed, company strong in other
divisions, but appears backing out of leasing division
)
Capital Associates, Denver, Colorado ( 12/2000 no longer doing business,
filing bk? )
Conseco Finance Vendor Service ( 12/2000 purchased by
Wells Fargo Leasing).
DVI Capital (12/2000 out of broker )
Finova
( 1/2001 laid off 90 employees, or about 9 percent of its workforce, in an ongoing
effort to cut costs. The company continues to employ about
300 people in Phoenix and 940 nationwide. (12/2000) out
of market place, many problems, raises $250 MM, but not enough )
(10/2000
Dow Jones headlines "Finova Stock Falls As Buyout Hopes Wane 10/2000 Dow Jones
notes stock falling and problems at Finova 11/2000 Announces
they will discontinue business, sell units 11/2000 Suspends
Dividend 11/2000 Leucadia National to Invest $350 Million in Finova 11/2000
reports $274 million loss
United Capital, Austin Texas ( 1/2001 ˝ employees
let go, portion of portfolio sold, discounters not paid,
vendors not paid, it is alleged.1/2001, selling off portfolio, problems ahead
with vendors not paid, brokers not paid, sinking in quicksand
12/2000 no new deals until after the 1st of year, Steve
Dallas trying to hold it together. Dallas says, " We will survive."
Finantra
(11/2000 will eliminate its commercial finance operations in order to focus on
its two core finance platforms, consumer finance and services
and consumer mortgage lending. )
Metwest Leasing, Spokane Wa. (11/2000
is pulling the plug, confirmed by five sources. 9/2000 advising
brokers that they have run out of funds so they are unable to fund a transaction
we have there for funding.)
Newcourt ( 8/2000
sold off ) Old Kent Financial ,GrandRapids, Michigan ( 11/2000 Fifth Third Bank,
Cincinnati, Ohio announces acquirement, to close second quarter 2001-Gateway Leasing
sold to Old Kent in 1997, small ticket leasing specialists
)
Orix 11/10 First Six Month Profits up 14% at Orix! ) 11/8 New President
at Orix appointed 11/10 First Six Month Profits up 14%
at Orix! No negative reports, company appears to be doing very well.
10/2000 "long-term Outlook has been revised from Stable to Negative" Credit Allianchat
it has changed its name to ORIX Financial Services, 9/2000
Japanese Bank President Commits Suicide (Orix is a 14.7%
shareholder in bank having problems ), ( 8/2000 closes small ticket vendor
division in Portland, Oregon, "Business as usual (in New Jersey and with brokers),"
says Steve Geller)
Resource Leasing, Herndon,
Virginia ( 11/2000 MicroFinancial/Leasecomm acquires major portion of
the assets.)
Signature Leasing, Dublin, California ( 11/2000 no longer
in small ticket marketplace; appears to have closed down
).
Transamerica ( 11/2000 for sale, but no buyers, so taken off marketplace,
no longer for sale ) Varilease ( 11/2000 closed down )
Copelco
(10/2000 ceases broker business, many complaints in manner turning off faucet
5/2000 sold to Citibank 10/2000 stock down rated/ )
Linc
Capital ( out of vendor and broker business, Nasdaq halts stock sales, $13.4
loss last quarter,10/2000 assets for sale )
Matsco
Financial (10/2000 purchased by Greater Bay Bank )
T&W, Washington
(10/2000 filed Chapter 11. Creditors meeting on 12-4-00 Seattle. Case # 00- 10868
US Bankruptcy Court Western District of Wash. 206-553-7545. Debtor Attorney-Marc
Barreca 206-623-7580)
Balboa Capital ( 9/2000
Founder Pat Byrne "...office available any time he wants to use it" Reported
he is no longer "in control" or working "full time" at Balboa, the company he
started).
Liberty Leasing, Des Moines, Iowa ( 10/2000 closed, selling
portfolio, owned by Commercial Federal Bank, Omaha, Nebraska
)
Bay View Commercial Corporation (Bay View Bank) 9/2000 discontinuing
all franchise loan and lease production
Charter
Financial ( purchased by Wells Fargo 9/5/2000 )
Manifest Group--(
9/1/2000 purchased by US Bancorp Leasing and Financial, "...a win for all the
parties involved," Brian Bjella. (Who is no longer is
at Manifest 1/2001))
Onset Capital ( 9/2000 Irwin buys 87% equity )
Republic Leasing, South Carolina 9/27/2000 ( "The expected result will
be a sale of Republic Leasing"---Dwight Galloway. He adds,"We
have always been for sale for the right price, but in thirteen
years we have not sold off any leases or gone direct after broker's business,
ever." )
SFC Capital ( 9/15/2000 purchased by Trinity Capital )
Dana
( 7/2000 sold off portfolio, active as captive lessor )
Lease Acceptance
Corp---( 7/26/2000 ceases broker business )
eLease ( June/July/2000
senior management changes )
New England Capital ( 6/2000 sold to Network
Capital Alliance a division of Sovereign Bank. Sovereign
did hire two people who will run a sales office in CT, doing basically the same
deals with the same people as before. Little will change
in that aspect.
Prime Capital, Chicago ( 6/2000 closed )
Scripp
Financial ( 6/29/2000 ( purchased by US Bancorp )
Metrolease--(
5/2000 reports closing operation, John Blazek at Evergreen Leasing, Hathcock losing
assets, will not confirm nor deny; many serious rumors of serious fraud floating
around the marketplace, including debt to Textron Financial,
reported to file bk.)
Phoenix ( 5/2000 both divisions closed )
FMA
Financial, California ( 4/2000 reportedly closed to brokers )
Fidelity
( 4/2000 acquired by EAB, a wholly owned subsidiary of ABN AMRO Bank N.V., headquartered
in the Netherlands, raising funds )
Comstock Leasing ( 3/2000 Unicapital
then Linc and discontinued operation this date ).
NIA National Leasing
( 3/2000 purchased by Lakeland Bancorp )
Franklin Leasing, Des Moines,
Iowa--owned by Liberty Bank-- (2/2000)-no longer writing leases (
limited by regulations and leases are for sale ).
Bankvest (1/2000)bankrupt,voluntary
(11/99) Orix, smaller banks,creditors file for involuntary bankruptcy
against Bankvest (10/99) ceases new business ( 8/99 )Fleet pulls their lines.
Commerce Security ( 9/99 closed to leasing broker program )(11/99 last
fundings/ 12/2000 Leasing News gives credit to Ron Wagner
as the first to see the quality and margins of leasing changing,
decides to avoid what was to happen in the year 2000 ).
Franchise Mortgage
Acceptance Corporation (FMAC) 11/1999 purchased
Heller Financial's
Commercial Services Unit ( 10/99 purchased by CIT )
Lyon Credit Corporation
( 9/99 purchased by Hudson United Bancorp )
Japan Leasing Credit claims
( JLC --6/99 purchased by Orix )
Liberty Leasing ( 6/1999 closed, California
company )
Golden Gate Funding ( 2/99 purchased by Westover Financial
)
NationsCredit, Business Leasing Group (1/29/99 sold to Textron**
1/2001 complaints from brokers regarding getting information
for NationsCredit and GrayRock Capital on FMV, payoffs, residuals
from Textron who is servicing the portfolio ) *** Textron does "broker business."
Colonial Pacific (11/98) purchased by GE Capital 5/2000 no more re-brokered
applications, except from one or two sources, such as
Steve Dunham's Leasing Associates )
American Business Leasing ( gone
)
The Bancorp Group, Inc. (Southfield, MI) (Not accepting news business.
The BOD of the parent bank is assessing what to do with
the leasing subsidiary.....currently servicing portfolio but not originating.
no longer in business )
Bankvest (bankrupt) .
Imperial Credit
Industries (ICII) ( sold portfolio )
Leasing Solutions , San Jose
( bankrupt )
Merit Leasing ( gone )
Prime Leasing, Minnesota
( no longer doing business )
Rockford ( sold to American Express )
USA Capital Leasing ( gone-bk )
***Original Purchases by Date by Unicapital American
Capital Resources 2/98
Boulder Capital Group 2/98
Cauff, Lippman Aviation
2/98
Jacom Computer Services 2/98
Matrix Funding 2/98
Merrimac Financial
Associates 2/98
MunicipalCapital Markets Group 2/98
The NSJ Group 2/98
PortfolioFinancial Servicing 2/98 --acquires assets of Unicapital
Vanlease
2/98
The Walden Group 2/98
K.L.C., Inc. dba Keystone Leasing 5/98
Jumbo Jet 7/98
HLC Financial 7/98
Saddleback Financial Corporation 7/98
---back in business U.S.
Turbine Engine Corp. 7/98
The Myerson Companies
dba BSB Leasing 9/98 --- back in business under original owner now: Don Meyerson
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