Headlines--
No Merger--UAEL Prez Says
Preferred Capital---On
the Block????
Bay View Announces After
Tax Loss of $17 million ( read the Press Release )
BOFA
AXES BANKERS AS LOAN RECORD GETS WORSE--New York Post
(
Blames Unicapital Loans and other leasing companies )
Auction
sells foreclosed homes in Oregon
Comdisco
Continues Web Growth
Prime
Street/eLease Acquistion--Internet Growth
MicroFinancial
Raises $50 MM Securitization
( List is not up-dated, as we are trying
to put into chronological order. The list is getting too big. editor ).
To Think About This Weekend ( see end of today's report )
UAEL Prez Confirms, " No Merger!!!"
As the year 2000 President of the
UAEL please allow me to assure all concerned that there has been no mention of
a merger with the EAEL during my term as president. What we do have under consideration
at this time is another joint conference with the EAEL. It is possible that news
circulating regarding these discussions caused some confusion. This is being discussed
at this time but no definitive plans have been made as yet. I haven't even heard
the rumor of a merger, at least not this time. For the sake of history a merger
between the two associations was proposed during Oren Hall's term as president
of the UAEL and Peter Ferrara's term as president of the EAEL. Obviously no agreement
to merge was ever reached. No one from the executive committee of either organization
has spoken about this, unless it was done clandestinely, during the last past
three administrations at the UAEL.
Bob Rodi,CLP
Soon to be Immediate
Past President of the UAEL
Hal Holowitz Says, "Old Rumor".
Re the UAEL/EAEL rumor which I imagine
are no more true, or even warranted now than they were in 1992 when I was around,
unless things have changed significantly since then, the question remains, what
could possibly be the benefit of a merger that would outweigh the benefit of a
perfectly good rivalry?
Hal T. Horowitz
Account Executive
Search
West
340 North Westlake Blvd., Suite 200
Westlake Village, CA 91336
Phone: 805-496-6811 ext. 231
Fax: 805-496-9431
Pager: 818-494-6875
hal.horowitz@searchwest.com
www.searchwest.com
"It is my mission to collaborate with my clients in order to further their success
by identifying professionals of uncommon ability to whom my clients might not
otherwise have access and who will make a valuable contribution to my clients'
goals."
Why Not????
I'm a UAEL and ELA member. I'd like to hear the reasons why
UAEL and EAEL should not merge.
Thanks.
kclune@clune.net
Preferred Capital, Tahoe City, California
( also known as Preferred Lease
)
http://www.preferredusa.com/1-800-995-6666/About/history.cfm
In June they closed all their branch offices ( Crystal Bay, Nevada, San Diego,
California, Dover,New Hampshire), it was reported. They were heavy in the mail
marketing and telephone solicitation with the "Pre-approved" approach, selling
mini-paper to GE/Colonial Pacific, Manifest, Commerce Security, up to over $10
million a month in their "hay day." Negative Cash Flow that has hit many others
in the industry was reportedly the reason for the downsizing or consolidation,
depending on your viewpoint.
David Murray and Louis Schneider were the
principals.They considered themselves marketers, not brokers or lessors, and even
treated their tax returns as they were a marketing company. ( David Murray is
no longer with the company, according to the their receptionist---he was listed
as the President in the UAEL directory ). They would promote their young account
reps into various management positions. There were no"leasing veterans".
Preferred DID generate a fair amount of loyalty to their employees due to some
of the percs: free season pass to skiing, various company-paid outings (i.e. white
water rafting) and bonuses (gave away a snowmobile once...) Their former employees
are not talking much as everyone was very happy.
This was the premier
"application only" operation. It was not basically "internet," but by telephone
and mail where there was no relationship selling, just low quote, get the customer
approved, change the rate or terms, a "boiler room" operation similar to one as
by Republic Leasing of Anaheim, but not as "intense," but more "turn the application
around" and move on to the next one.
The approach was the same that was
used by some of the salespeople at the Republic Group and Corporate Capital before
they were acquired by First Sierra. Corporate Capital even issued a "credit card"
to the end user, but did not check their credit for approval until an actual application
was received.
The building in Tahoe City was full of little cubicles,
each with a recent college graduate, none of whom knew anything about leasing,
or sales for that matter. The sales program was very clever. The company bought
mailing lists from D&B and other sources and sent solicitations to the prospects.
The solicitation included what appeared to be a credit card and the prospect was
informed that he/she had been "pre-approved" for up to $75,000. All that it would
take to activate the credit line was a call to an 800 number. The system was taken
almost directly from the type of letter you get from credit card companies. Naturally,
when the prospect called, he had to provide a "little" additional information
(again, a la credit card solicitations). Of course, there was never a "pre-approval".
The prospect was "pre-qualified".
We received a Plastic Card almost every
week at the various companies here at American Leasing. I am sure everyone in
California has at one time or other received one of Preferred's mailers. All our
advisors are aware of this company, and most said they have received the card.
The company recruited their salespeople directly from colleges, using as a lure
the Tahoe ski and fun lifestyle. They did little or no selling, but followed closely
the company "line". They were simply order-takers, responding to incoming calls
rather than making outgoing sales calls.
About a year ago the company
moved into larger quarters on or close to the lake front. In June, the Tahoe City
Newspaper noted they had closed their branch offices. The web site makes no mention
of this and calls to the current president have gone unanswered.
We have
verified that the company is for sale, is in the process of being purchased or
maybe purchased. We are not at liberty to give the details as we are unable to
confirm some of them, including bank problems and up-side down cash flow---these
are rumors and unsubstantiated at this time---but from several sources as we had
with Metrolease, Unicapital, and others in the early beginning. Our "readers"
give us the information we have here.
Annoymous ( famous poet or broker? )
I am a little curious about the hostility
toward some contributors who want to remain anonymous. If the comments made could
have a negative impact on someone's employment or ability to make a living it
is understandable. Some people feel compelled to tell the truth but not at risk
to themselves. Information that is important to be aired would not come to light
without anonymity.
Anonymous
( We would not have gotten the "inside"
information on Sierra Cities, Unicapital, United Capital, El Camino Leasing, and
many other stories if we did not honor and "appreciation" Anonymous. editor )
BOFA AXES BANKERS AS LOAN RECORD GETS WORSE
New York Post
By ROBERT CLOW
Bank of America will respond to its mounting credit problems by laying off 100
commercial and investment bankers, sources said yesterday. Leasing company UniCapital
Corp. is the most recent BofA company to go belly-up and the tally of bad loans
is rising for Hugh McColl's banking giant. UniCapital filed for Chapter 11 last
Tuesday, and market sources believe BofA has at least $400 million exposure to
the company. The No. 2 bank recently acknowledged a $500 million exposure to troubled
consumer-products maker Sunbeam and bad loans were partially blamed when it warned
of falling earnings earlier this month. A spokeswoman declined to comment on layoffs
but a source close to the bank pointed out that the cuts represent only 3 percent
of BofA's bankers. The source said the bank will continue to hire heavy-hitting
bankers where possible. BofA predecessor Nationsbank originally raised a $1.2
billion, three-year bank loan for UniCapital in 1998, when the Florida-based leasing
company planned to snap up a bunch of similar concerns. UniCapital helped finance
the purchase of everything from airplanes and trains to computers and other office
equipment. The market soured on that business plan after the debt market blew
up in the fall of 1998. BofA and Morgan Stanley Dean Witter, which managed UniCapital's
initial public offering, were reported to have been left holding most of the 1998
bank loan. Morgan Stanley has acknowledged bad debts in its high-yield portfolio,
and it was one of the lead managers of the Sunbeam loan. But Bank of America may
be more exposed because it continued to roll UniCapital's financing right up until
the end - even as the company was desperately selling its valuable aircraft leases
to Lehman Brothers. Through Nov. 30, BofA kept a $300 million revolving credit
- a type of expensive bank loan that can be drawn down in an emergency. It also
kept the company's commercial paper facility going. As is normal with bank loans,
some of UniCapital's loans are collateralized with the assets the company is financing
- the trains, planes and computers. For example, Morgan Stanley has a $200 million
secured-credit facility that is explicitly guaranteed by small- and middle-market
leasing equipment. (Planes and trains are the big-ticket items.) But a banker
in the industry explained that is not a watertight protection because leasing
equipment, like computers and other office equipment, quickly loses its value
and can be difficult to resell. And Securities and Exchange Commission filings
suggest that Bank of America's facilities may not even be backed with these flimsy
guarantees.
Bay View Reduces Exposure to Franchise Assets
$17 Million After Tax Loss
SAN MATEO, Calif.,/PRNewswire/ -- The following was issued by Bay View Capital
Corporation:
Bay View Capital Corporation (NYSE: BVC) announced today
that it has negotiated purchase and sales contracts with multiple parties for
a total of $110 million of franchise loans, of which $90 million in sales have
already closed. These sales will not have a significant impact on fourth quarter
earnings as the transactions were executed at prices at, or near, par value.
Mark E. Lefanowicz, the Company's Chief Financial Officer, commented, "We are
encouraged by these recent franchise loan sales and remain optimistic regarding
our ability to sell our franchise loans. Our progress this quarter demonstrates
that we can execute franchise whole loan sales at, or near, par value. We are
actively pursuing additional franchise loan sales to further reduce our concentration
risk, although the terms of any future sales will vary depending on, among other
things, the interest rate and maturity of the specific loans within each loan
pool. The sales terms could be negatively impacted if we accelerate this process
through a bulk sale of loans."
As a result, Bay View expects to have reduced
its franchise loan portfolio to approximately $820 million by December 31, 2000.
In addition, the Company sold its $258 million in franchise-related asset-backed
securities generated earlier in the year from an on-balance sheet securitization.
Although the sale of these low-yielding securities resulted in an after-tax loss
of approximately $17 million, the Company will benefit in future periods by the
elimination of a negative spread associated with the securities.
Bay View
will also continue its ongoing efforts to reduce its exposure to franchise loans
by reevaluating its franchise-related allowance for loan losses and other franchise-related
asset valuations during the fourth quarter of 2000.
Bay View Capital Corporation
is a diversified financial services holding company with over $6 billion in assets.
Headquartered in San Mateo, California, it is the parent company of Bay View Bank,
N.A. and its subsidiaries, Bay View Acceptance Corporation, Bay View Commercial
Finance Group, and Bay View Franchise Mortgage Acceptance Company.
Forward-Looking
Statements
This press release contains forward-looking statements that
describe the Company's future plans, strategies and expectations. All forward-looking
statements are based on assumptions and involve risks and uncertainties, many
of which are beyond the Company's control and which may cause actual results,
performance or achievements to differ materially from anticipated results, performance
or achievements. Factors that might affect forward-looking statements include,
among other things:
-- the demand for the Company's products;
-- actions taken by the Company's competitors;
-- tax rate changes, new
tax laws and revised tax law interpretations;
-- adverse changes occurring
in the securities markets;
-- inflation and changes in prevailing interest
rates that reduce margins or the fair value of the financial instruments held;
-- economic or business conditions, either nationally or in the Company's market
areas, that are worse than expected;
-- legislative or regulatory changes
that adversely affect the Company's business;
-- the inability to sell
or securitize assets;
-- the timing, impact and other uncertainties of
asset sales or acquisitions and the Company's success or failure in the integration
of their operations;
-- the ability to enter new geographic and product
markets successfully and capitalize on growth opportunities;
-- technological
changes that are more difficult or expensive than expected;
-- increases
in delinquencies and defaults by borrowers and other loan delinquencies;
-- increases in the provision for losses on loans and leases;
-- the inability
to sustain or improve the performance of subsidiaries;
-- the inability
to achieve the financial goals in the Company's strategic plans, including any
financial goals related to both contemplated and consummated asset sales or acquisitions;
-- the outcome of lawsuits or regulatory disputes;
-- credit and other
risks of lending, leasing and investment activities;
and
-- the
inability to use net operating loss carry forwards currently held by the Company.
As a result of the above, the Company cannot assure that future results of operations
or financial condition or any other matters will be consistent with those presented
in any forward-looking statements. Accordingly, the Company cautions you not to
rely on these forward-looking statements. The Company does not undertake, and
specifically disclaims any obligation to update these forward-looking statements,
which speak only as of the date made.
SOURCE Bay View Capital Corporation
CO: Bay View Capital Corporation
( Sorry for the length, but wanted to
report it all, including the disclaimer. You don't have to read it all, but it
is there as it legally should be. editor )
Auction sells foreclosed homes in Oregon
By Gordon Oliver of The Oregonian
staff
An online auction of foreclosed homes throughout Oregon made sales of
20 of the 38 homes listed on the auction site, with net sales of more than $2
million. AMSauctions.com, an Alabama-based company that launched its online auctions
of bank-owned properties in June, reported that the homes sold for $30,000 to
$451,500. The high-priced home, which attracted a dozen bidders, was on Southwest
Cardinell Drive in Portland's West Hills. Other homes were in the Portland, Salem
and Eugene areas, and in Lebanon, Lincoln City, Coos Bay, Roseburg, Klamath Falls
and Ontario. The company estimates that buyers were equally split between investors
and families who bought the homes to live in.
The company said it has now
sold more than 300 homes nationally at its online auctions. In Oregon, the company
has created a subsidiary of Kingdom Properties of Portland for legal purposes.
The Oregon auction was Nov. 8-19. Prospective bidders could view the homes with
the aid of a real estate broker, and they submitted secured bids over the Internet.
PrimeStreet
eLease; PrimeStreet Expands Leadership Position in Online Credit
by Offering
Point-of-Sale Leasing Solution
BOSTON--(BUSINESS WIRE)--Dec. 20, 2000--
Lead Investor, idealab! to Invest in PrimeStreet
PrimeStreet Corporation,
the leading enabler of real-time credit solutions for companies servicing the
small business market, today announced an agreement in principle to acquire Palo
Alto based eLease Financial Services, Inc., developer of the premier web-based
transaction processing system for l easing companies, banks, and equipment manufacturers
and dealers that offer leasing to their customers.
This acquisition deepens
PrimeStreet's comprehensive range of credit solutions and advanced real-time online
and offline leasing solutions to equipment vendors and point-of-sale customers,
and solidifies PrimeStreet's leading position in the credit infrastructure industry.
"Combining PrimeStreet and eLease's technology and market strengths creates a
solid cornerstone for our vision of placing real-time lending and leasing automation
solutions at the immediate point of need", said Kevin Talbot, chairman and CEO
of PrimeStreet Corporation. "eLease has developed a lead ing-edge automation platform
that will reduce transaction costs and increase revenues for clients."
The eLease Platform(TM) consists of 1) AccessPoint(TM), which enables leasing
functionality on any Web site, 2) SalesPoint(TM), which provides lease sales force
automation solutions, and 3) InOffice(TM), which facilitates configurable workflow
solutions for back office lease processing. The eLease Platform(TM) manages sales,
application, underwriting, documentation, billing and accounting functions and
is delivered in a hosted services model so that all hardware, software, data management,
and network support and administration are included in the solution.
"By
joining forces with PrimeStreet we can collectively deliver a more powerful and
fully-integrated solution to the market", said Ivan Wolkind, CEO of eLease. "The
combined strength of our two companies will allow us to address comprehensively
the needs of the lessor and vendor finance industry, which is estimated by the
U.S. Commerce Department to grow to $240 billion by the end of next year."
Acquisition details:
eLease will remain based in Palo Alto, California,
and will be combined with PrimeStreet's West coast sales office. The new entity
will use the PrimeStreet corporate name.
Under the terms of this agreement,
eLease's lead investor, idealab!, will make a separate financial investment in
PrimeStreet.
About eLease
eLease provides lease process automation
solutions for every constituent in the leasing process including financial institutions,
capital equipment vendors, and businesses that need to either offer or acquire
leases. Utilizing eLease Platform(TM), eLease develops and delivers Web-based
leasing sol utions that add leasing functionality to any Web site, lease sales
force automation solutions, configurable workflow solutions for back office lease
processing and a business-to-business marketplace for acquiring capital equipment
leases and lease lines. eLease is based in Palo Alto, CA. Additiona l information
can be found at the company's Web site www.elease.com.
About PrimeStreet
Corporation
PrimeStreet(TM) is the leading enabler of real-time credit
solutions for companies serving the small business market, including financial
institutions, equipment vendors, and marketplaces. PrimeStreet's eBusiness Finance
Platform (eFP) is a transaction processing engine that provides the core func
tionality required in all credit transaction process flows and permits data exchange
among PrimeStreet, loan origination, and channel partner systems in both online
and offline environments. The PrimeStreet eBusiness Finance Network (eFN) is a
tightly integrated network of lending institutions cov ering multiple credit tiers,
enabling the solution to support a wide range of applicant requests, including
lines of credit, term loans, business credit cards, leases, factoring, and merchant
credit. PrimeStreet's real-time credit processing platform is delivered to clients
through a hosted servic es model and is currently used by over 60 financial institutions
and more than 33 online finance centers.
PrimeStreet operates in both
the United States and Canada. For more information, please visit www.primestreet.com.
PrimeStreet is a trademark of PrimeStreet Corporation. All other company, product
and branded names are trademarks of their respective owners.
CONTACT:
Blanc & Otus Public Relations
On behalf of PrimeStreet
Lyn Francoeur,
617-262-6454 x210
lfrancoeur@blancandotus.com
or
PrimeStreet
Corporation
Alan Rodgers, 617-314-6105
arodgers@primestreet.com
MicroFinancial Inc. Announces The Closing Of A $50MM On Balance Sheet Securitization
WALTHAM, Mass.--(BUSINESS WIRE)--Dec. 20, 2000--MicroFinancial, Incorporated ("MFI")
closed a $50MM on balance sheet securitization on December 18, 2000. "This is
now our 8th securitization, and the second one in 2000.
It is insured
by Ambac Assurance Corporation and was rated by S&P AAA and Moody's Aaa. Rothschild
Inc. was the Placement Agent. The results of the reviews and audits of our company
by the auditors of Freed, Maxick, Lender Advisory Se rvices, rating agencies,
insurance company and investors, together with our more than 14 year track record
of financial success made closing of this facility as effective and efficient
as all the prior ones" says Kerry Lincoln, VP Accounting and Finance
"While
for many specialized financial intermediaries obtaining sufficient refinancing
has become a major issue during the second half of 2000, our track record has
gained us the trust and support of leading refinancing sources and has secured
us with stable, reliable, ample and efficient refinanci ng alternatives. Our strategy
has always been to have diversified refinancing types and sources available and
after having closed on a $192MM syndicated revolving bank facility in August 2000
this is another indication of the success of our strategy" says Peter Bleyleben,
President and CEO.
"Having direct borrowing arrangements with leading
banks in our industry together with our track record of successful on balance
sheet securitizations has become a significant strategic advantage for MFI and
its subsidiary Leasecomm Corporation. Dealers presenting us with lease applications
know t hat they are dealing with a leasing company that over the past 14 years
has proven its ability to secure sufficient and economic refinancing in most any
economic environment" concludes Richard F. Latour, Executive Vice President, COO
and CFO.
MicroFinancial Inc., (NYSE: MFI), headquartered in Waltham, MA,
and with additional locations in Woburn, MA, and Newark, CA, is a financial intermediary
specializing in leasing and financing for products in the $500 to $10,000 range.
The company has been in operation since 1986 and has been profit able since the
second quarter of 1987. Please visit our Web-Site at http://www.microfinancial.com
This release contains forward-looking statements. These statements are subject
to certain risks and uncertainties that could cause actual results to differ materially
from those anticipated in the forward-looking statements. Readers should not place
undue reliance on forward-looking statements, which reflect the management's view
only as of the date hereof. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect subsequent events or circumstances.
Readers should also carefully review the risk factors described in documents the
Company files from time to time with the Securities and Exchange Commission.
CONTACT:
MicroFinancial, Incorporated
Richard F. Latour
EVP, COO
and CFO
781.890.0177
richard.latour@leasecomm.com
KEYWORD: MASSACHUSETTS
CALIFORNIA
Participate.com Chooses Comdisco for Managed Web Hosting Services
ROSEMONT,
Ill.--(BUSINESS WIRE)--Dec. 20, 2000--
High-Availability, Flexibility
and End-to-End
Management Capabilities Key Factors In Online
Community
Management Firm's Selection
Comdisco (NYSE: CDO) today announced that
it will provide Web hosting services for Participate.com, the Chicago-based manager
of online communities for corporations. Participate.com's selection is largely
due to Comdisco's high-availability services and expertise. As part of the service
agreement, Comdisco will host Participate.com's primary online community management
site and provide ongoing monitoring and support. In addition, Comdisco will provide
continuity and availability services to ensure uptime for Participate.com's site.
"A secure and highly-available Web environment is absolutely critical for Participate.com
and our customers," said Alan Warms, president and chief executive officer of
Participate.com. "With Comdisco, we have a fully managed hosting solution backed
by the company's long history of expertise in continuity and availability services."
In choosing a Web hosting environment, Participate.com sought a solution that
provided monitoring services that extended to the application layer, allowing
them to monitor failures from all levels. Comdisco's fully managed offering enabled
Particpate.com to meet that criterion.
"Participate.com is a leader in
creating online communities that enable businesses to strengthen customer relationships
and garner real customer insight," said Dave Sloboda, senior vice president of
marketing and business development at Comdisco. "Comdisco will provide a secure
Web infrastructure that will serve as the foundation for Participate.com's online
communities."
Participate.com's online community management services enable
corporations to:
-- Increase customer loyalty and retention
--
Lower operating and customer acquisition costs
-- Measure and leverage
the value of their online communities
Comdisco Web services offer high
availability hosting solutions to both dot.coms and traditional brick-and-mortar
companies with significant e-commerce initiatives. The services include:
-- Continuous Web-Availability Services, which use a combination of load balancing
between geographically distributed primary and alternate sites, high availability
techniques for database synchronization and high-speed networking.
--
ATOP(SM) Services (At-Time-of-Peak), a turnkey solution that immediately delivers
additional capacity to meet planned or dynamic peaks in traffic to a customer's
site.
-- Rapid Recovery and Web Disaster Recovery services, which enable
customers to restore their Web presence within a pre-defined time frame, using
redundant technology, standby operations and alternate sites.
For more
information on Comdisco Web Services, call 800.272.9792.
About Participate.com
Participate.com is a provider of outsourced online community management for corporations.
Along with its community management services, Participate.com delivers its clients
strategic plans for building online communities and selecting, integrating, and
deploying the technology for these online com munities. Through its Community
Management Center, Participate.com offers Fortune 1000 companies the expertise
and focus needed to manage the complex issues involved with harnessing the power
of online community. Participate.com's approach delivers the experience and resources
that its clients --
which include Ace Hardware Corporation, Cisco Systems,
Microsoft, and SAP AG
-- rely upon to create and grow vibrant online communities.
About Comdisco
Comdisco (www.comdisco.com) provides global technology
services to help its customers maximize technology functionality, predictability
and availability, while freeing them from the complexity of managing their technology.
The Rosemont, (IL) company offers a complete suite of information technology services
including business continuity, Web-Availability (SM), network, and IT Control
and Predictability Solutions (SM). Comdisco also offers equipment solutions to
key vertical industries, including electronics, telecommunications, pharmaceutical,
biotechnology and manufacturing. Through its Ventures division, Comdisco is providing
equipment leasing and other financing and services to venture capital backed start-up
companies. The company's revenue for the 12 months ended September 30, 2000 was
$3.9 billion.
CONTACT:
Comdisco
Rich Maganini, 847/518-5438
ramagani@comdisco.com
URL: www.comdisco.com
or
Participate.com
Bill Perry, 312/279-9521
bperry@participate.com
To Think About this Weekend:
Remember "everything that was old becomes
new again"
"History repeats itself"
"Credit is credit"
All that said I'm sure you'll see full disclosure to be back in vogue very soon.
If you have not seen it already. And while credit scoring works for the consumer
going into Best Buy for a big screen TV, I just do not see it viable for commercial
leasing/lending, especially for larger deals.
Recent observation UAEL
1999 conference in Scottsdale everyone was playing golf & by the pool with funders
everywhere. UAEL 2000 conference in Monterey was the "high tide" for leasing.
2000 conference in Orlando gave the impression that leasing was somehow Mickey
Mouse industry and ended with a tropical storm, which was a sign of things to
come. Now the 2001 conference is in San Antonio, home of the Alamo. Does that
indicate that this could be the last stand for some brokers and funders? I think
the 2002 conference should be at Ft. Riley and titled "Back to Basics"....Basic
training that is! The fundamentals of credit do not change, just the people asking
for and giving out the money.
( name withheld )
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