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| June 13, 2000 Answers
to the Last Request for Information Hi Kit, I have been a silent but interested party until you asked the question. Granite Financial changed its name January 1st, 2000 to FNF Capital, Inc. The initials FNF reflect our parent company Fidelity National Financial (d.b.a. Fidelity National Title - the largest title insurance company in the US, listed on the NYSE as FNF). This is not a new event, Fidelity National Financial purchased us in February 1998 (2.5 years ago) and please note is absolutely no relation to the Fidelity Leasing in Pennsylvania nor Fidelity Investments. Yes, we are alive and well and very stable compared to the rest of the industry. While there were certainly an abundance of negative rumors about us in 1998, we used 1999 as a year to right the ship, and we are doing very well operationally and financially. Our secret is really no secret, we limited the number of brokers that we do business with to a high 2 digit figure made of brokers that we know and trust. These are brokers who all give us a steady stream of business with good approval and funding ratios and maintain acceptable delinquency levels. We are actually pretty pleased to be relatively quiet in the industry right now while we are just writing good business. I think we are comfortable funding $14-$18 million a month without anyone squawking about what we are doing. I have a question about your list - Why does a company make the list for selling to another company? In many cases it can be a very positive event in the life of a company to sell to another. I think the list should be restricted to companies only who have legitimate problems that you consider a telltale sign of industry problems. I also think it should be limited to real lessors and not brokers. For example, you list "Libery Leasing", which I am guessing should actually be Liberty Leasing is a broker whose owner sold to Mercantile Bank in Florida and is now called Mercantile Bank Leasing. If Libery is supposed to be Liberty, I think you should remove them. Is it fair to brand Rockford Financial as being a problem when they sold to American Express? Or Copelco by selling to Citibank? I am sure leasing companies all over are having problems, but will AMEX and Citibank actually buy major dogs that will cost them their profitability? I don't think they would. Furthermore, if selling is a qualification for making the list, don't forget to include Colonial Pacific who was sold by Pitney Bowes to GE Capital. Must be problems there!(tongue in cheek - I don't know or care if they are healthy or troubled). Take care!
David Marks ( Your points are very well taken. In the case of Rockford, Rockford was a very healthy, going operation. American Express has taken deals away from me as they contact customers direct. I am a card holder and they both mail and e-mail leasing approvals for up to $100,000 ---I have a high card limit, too ). I think I should change the list to not problems, but " major changes in the leasing industry." Some companies survive, collect leasing payments, and may come back with an infusion of capital.---editor ) Post Script: I asked Mr. Marks to quote him first, as I will do when required. I am in process of revising the list and appreciate any and all comments. Here is an anonymous one---that I have edited: Unicapital stock value is in the toilet, as reported in the Monitor and on your list. Several of the divisions are performing well, such as BSB...You are correct, a class action lawsuit has been filed, but you and I both know that it is very easy to file suit...it is a little harder to prevail, especially when you have a very weak case. ( I know BSB is active with other sources and are more a super broker, if you will with many places to go in the market place, as I continue to broker business to this company--editor ) Hi
Kit, I enjoy looking at your e-mails referencing all the turmoil in the industry.
We are continuing to grow and see a good volume of quality financial statement
business and are looking for people. With all the companies consolidating etc.
there must be some experienced credit people out there looking for work. Thanks Steve
Crane Finantra Capital Falls Out of Bed with Prime News Release *****1 www.seismiq.com.
News Relase ****2 Netbank Makes Paying Bills on Line Easier, Plus Program Now Available to Accept Lease Payments Over the Internet. News Rlease ****3 Full News Releases Story#1 Prime Capital (Prime) announced that the Letter of Intent under which Finantra Capital (Finantra) agreed to acquire, through a subsidiary to have been formed for that purpose, all of the authorized, issued and outstanding common shares of Prime (the Letter of Intent) has now expired. In connection with the Letter of Intent, Finantra undertook and the transaction was contingent upon Finantra's ability to negotiate mutually satisfactory arrangements with the note holders of Prime's securitizations (the Securitizations) as well as certain lenders. Finantra failed to reach satisfactory agreements with all of said parties. Finantra said, following an initial period of due diligence, it had lowered its original offer for all issued and outstanding shares of Prime by more than 50 percent. The initial deal, announced on Feb. 29, called for Finantra's acquisition all authorized, issued and outstanding common shares of Prime based on an exchange ratio of 0.315 per share of Finantra common stock for each Prime common share, but not to exceed $1.141875 per share for each Prime common share. "Our continued due diligence revealed certain business practices that we believe are inconsistent with the standards we have developed at Finantra," Finantra Chairman and Chief Executive Robert Press said in a statement, adding the company might reconsider an acquisition if Prime shows progress in restructuring its debt. Certain of Prime's subsidiaries are in default of various covenants under the Securitizations and related agreements for the securitization of the assets of such subsidiaries. Additionally, Prime is currently in default of certain covenants under other loan agreements including its warehouse credit facilities and other senior and subordinated debt. Further, Prime's main credit facility has expired and Prime is not permitted to borrow additional funds under such facility. As a result, Prime is no longer warehousing transactions. Prime is considering all viable alternatives under the circumstances. As such, Prime has actively undertaken negotiations directly with the holders of the Securitizations and other lenders and has engaged Development Specialists to serve as Prime's financial advisor and the law firm of Pachulski, Zeihl, Young & Jones P.C. as special counsel. Story #2 Seismiq, Inc. Announces Plans for the First Full Lifecycle Lease Management and Accounting System Available on the Internet FLORHAM PARK, N.J., June 13 /PRNewswire/ -- Seismiq, Inc., a company focused on providing cutting-edge software solutions to the commercial finance community, today announces plans to offer a web-delivered, totally automated, end-to-end system solution designed to enable clients to initiate, account for and manage a wide variety of financial transactions. Seismiq's solution initially will maximize transaction processing and systems management over the Internet for the equipment leasing and finance community. Seismiq's system is being developed with state-of-the-art, component-based software technology, which facilitates a long-term system solution in a rapidly changing marketplace. Seismiq will deliver its solution on an application service provider basis, which will reduce a client's system development investments and operating expenses. The company's software system is being developed principally by ThoughtWorks, a leading Internet professional services provider. ThoughtWorks specializes in strategic business-to-business e-commerce solutions, particularly in leasing and financial services. It is an equity investor in Seismiq. "We designed the technology so that it could change and adapt as the business needs of an individual customer change. There is no reworking or redesigning required," said Roy Singham, President, ThoughtWorks. Seismiq is offering its solution in phases to ensure that customers can maximize the integration of its functionality. The first system scheduled for deployment is the web-enabled lease origination solution in August 2000. The fully functional front- and back-end system is scheduled to be commercially available in the second quarter 2001. Dana Commercial Credit Corporation (DCC), a leading provider of leasing and financing services to the automotive industry, is expected to be Seismiq's first customer. DCC is a subsidiary of Dana Corporation, a $13 billion automotive supplier. "We believe that Seismiq's application will enable us to control critical business processes, from credit to capital utilization, to every aspect of the customer experience in a total e-commerce environment," said Paul Bishop, Chief Operating Officer, Dana Commercial Credit Corporation. Seismiq's management team, including Tom Wajnert, a 30-year equipment leasing and financing veteran and former chairman of AT&T Capital Corporation, has more than 60 years combined experience in financial and technical services. "We believe that Seismiq's solution will reduce the resources customers must commit to manage their non-strategic business, such as systems management, enabling them to focus on what's most important -- their customers," said Tom Wajnert, chairman and a founding shareowner of Seismiq. "No longer will financing organizations have to cope with separate stand-alone front-end, back-end and e-commerce systems. Seismiq will integrate the functionality of these systems into one seamless, integrated solution." In addition to its technology solution, Seismiq offers business process outsourcing services to enable customers to outsource all or some of their lease financing functions. By leveraging its deep-rooted industry experience, the company also offers strategic consulting services. Seismiq is headquartered in Florham Park, New Jersey. You can learn more about the company by visiting its web site at www.seismiq.com. SOURCE Seismiq, Inc. CO: Seismiq, Inc.; ThoughtWorks
ST: New Jersey Story # 3 NetBank(R) Introduces Free Electronic Bill Presentment Services With Just a Few Clicks, NetBank Customers Can View and Pay their Bills Online at One Convenient Location, all for Free ATLANTA, June 13 /PRNewswire/ -- NetBank, Member FDIC, Equal Housing Lender, (Nasdaq: NTBK); (www.netbank.com) and the nation's leading Internet bank, today announced it has expanded its line of financial products to include online bill presentment services through its current bill pay partner, CheckFree Corporation (Nasdaq: CKFR). Now, when NetBank customers log into their bank accounts at www.netbank.com, they can both receive and pay their bills online for free. "Providing customers innovative services such as electronic billing and payment is key to NetBank's financial services strategy," said D.R. Grimes, NetBank chief executive officer. "Our customers have long enjoyed the convenience of free electronic bill pay, and now gain even greater control over their finances by being able to both pay and receive their bills all in one place at no extra charge. By adding this new service, our opportunity to communicate with customers increases as they will be returning to NetBank more frequently." Through its partnership with CheckFree, NetBank offers its customers the opportunity to receive their bills electronically from a growing number of merchants, about 100 at this time. Here's how it works -- it's the first of the month and your utility and credit card bills are due to arrive for payment. Instead of getting a paper bill, your monthly bills from those merchants will be sent to your NetBank account to view online. Summary information is displayed on one page in the payments area of your account; and, with one click, you can view the entire bill statement, just as you would via a hard-copy statement, in full detail, including charge dates, interest, and more. Paying an electronic bill is as simple as confirming and or changing the amount and payment date for each bill, then clicking the appropriate box for payment. Once sent, the amount of the bill is electronically deducted from the customer's NetBank account. Customers can view an online record of past bills with the option of printing them, if desired. NetBank's new bill presentment services offer greater convenience and cost savings for both parties on mailings, as well as higher accuracy and a faster turnaround. Unlike paper bills, electronic bills are interactive, and payments are backed by the CheckFree Guarantee that limits liability for unauthorized transactions and processing delays. About NetBank(R) NETBANK, Inc. (Nasdaq: NTBK); (http://www.netbank.com), is a financial services company whose sole subsidiary, NetBank, member FDIC, is the first profitable pure Internet bank in the country, having achieved profitability in the past eight successive quarters. With over $1.4 billion in assets and customers in all 50 states and 20 foreign countries, NetBank was recently ranked as a Money.com pick for "Best Online Banks." With its low-cost, branchless business model, NetBank is able to reward its customers with high interest rates on deposits with low or no fee banking services. Products and services include free online account access, free checking, free unlimited online bill payment and presentment, free checks, free unlimited ATM use, VISA(R) Check Card, VISA(R) credit cards, online brokerage services, mortgage lending, home equity lines and loans, IRAs, and business equipment leasing services. NetBank is a member of the AFFN, Cirrus, Honor/Star, and NYCE ATM Networks. For more information on NetBank, its products and services, visit the Web site at http://www.netbank.com, or call 1-888-BKONWEB (256-6932). "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding NetBank's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward- looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year. SOURCE NetBank, Inc. CO: NetBank; CheckFree Corporation ST: Georgia, New York IN: FIN MLM SU: JVN PDT 06/13/2000 08:30 EDT www.prnewswire.com
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