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June 8 , 2001 Headlines---- European American Bank To Close Broker Division Leasing News Makes It on Lessors.Com GE Capital Completes Acquisition of Mellon US Leasing and Mellon Leasing Employees asked to leave by Tuesday, we are told CalFirst Bancorp Announces Fourth- Quarter Dividend Tyco Announces Sale of CIT's UK Business Equipment Leasing Operation to GE Capital Equipment Finance DVI Selects Oracle Corporation for e-Business Solutions Finova Bonds Rise on GE Capital Sweetened Bid CVB Financial Corp Goes to Nasdaq---starting a new trend?
### denotes company press release --------------------------------------------------------------------------------------------- European American Bank to Cease Broker Origination June 30, 2001 Leasing News reported yesterday late afternoon that Citicorp has ordered European American to cease third party origination by June 30. After buying Copelco, they also ended brokerage business here. EAB purchased Fidelity Leasing April 14,2000, and was the premier lessor when purchased by Citibank on February 12,2001 for $1.6 billion and $350 million preferred stock. The news of closing the broker origination division hit all the leasing industry hard, especially on the east coast. Reaction was swift about the resignation of European American President Ira Romoff; the emminent departure by Fred Anderson along with Omar Diaz and Rich Illich: Who
is Ira Romoff? Ira Z. Romoff is the Executive Vice President of EAB's Leasing Department
and a member of EAB's Executive
Management Group. Under Mr.
Romoff's direction, the EAB
Leasing Department has advanced
as an integral part of the bank's record growth since 1991.
As a result, EAB's Leasing Department
ranks among the top fifteen
bank leasing companies throughout
the United States. With more than 25 years in the financial
services industry, Mr. Romoff's
expertise as a commercial banker and leasing executive is
surpassed. He has been a Director
with the Eastern Association
of Equipment Lessors and the
Equipment Leasing Association
and is a member of both the
United Association of Equipment
Leasing and the National Vehicle
Leasing Association. Recognized
for his numerous contributions
to the small business community
throughout Long Island, Mr.
Romoff was named Financial Business
Advocate of the Year by the
Small Business Administration.
In addition, he is an active
proponent of business education,
serving as the Executive in
Residence of the Department
of Management for the College
of Business Administration at
St. John's University. from: http://www.eab.com/lease_financing/ira_romoff.html
from: Joe Bonanno, NAELB Legal Counsel attyjgb@aol.com Ph: (781) 391-7800 www.leasingissues.com I have known all of the individuals that you mentioned personally for a number of years. They are obviously all well known and respected. I wish them my personal best in their future endeavors. ^^^ With much sadness, Barry Reitman KEYSTONE EQUIPMENT LEASING, INC. baldguy@keystoneleasing.com This one really hurts. No, I did not do a great amount of business with EAB. No, their rates were not the absolute lowest for the credit appetite they had (although they sure were competitive). No, they would never accept docs without every "T" crossed and every "I" dotted. But I am indebted to Ira Romoff. I do not believe there will ever again be a bank-directed middle market funding source with the overall level of professionalism, knowledge, and just plain decency that Ira put together. He chose the best people the industry had to offer, and he set a course that is universally respected. I am indebted to Omar Diaz. So many times he led me by the hand when he recognized the key to making a deal work (and always telling me that the structure was my idea). I am indebted to Fred Anderson. He always graciously and authoritatively resolved problems. Fred Anderson is a leader and a gentleman in every sense of the word. I am indebted to Susan Jaskolski and Lorraine Brooks, each in her own style a true professional who knows this business (and can't be snowed!). i am indebted to Rick Illich, and Michael, and Fred Z. and Ann Boialis and...and...and... I am indebted to Ira Romoff, who sure knows how to pick 'em. This one really hurts. ^^^^^ from: Gerry Oestreich Happened to be in the office late tonite and couldn't resist one more peek at the late arriving e-mails. Wow, what a horrible way to reward guys like that, for building a huge portfolio like they had done! Corporate America ain't what it used to be, like back when I was a kid, rather than a Jr/Sr Citizen, with over 22 yrs in this biz! ^^^^^^ From: Steven B. Geller, CLP Leasing Solutions LLC www.leasingsolutionsllc.com 20 Dike Drive, Wesley Hills, NY 10952 sgeller@leasingsolutionsllc.com phone:(845)362-6106 fax: (845) 354-2803 cell phone: (914) 552-0842 I, along with many many people in the industry were quite saddened to learn of the Citibank/EAB action. I considered all the guys there long time friends, having known them all since they were at prior jobs, some I have know long enough over two or more prior positions. My best wishes to them all; "Pros" in an industry that unfortunately is no longer honoring hard work and dedication as reasons to keep loyal employees. Getting the word from Rick yesterday was like deja vu all over again! ^^^^^ from: Alan M. Fern Vice President 631-858-5130 (direct) afern@sovereignbank.com I would like to respond to the closing of GE Tilden and the most recent announcement regarding European American Bank. We at Network Capital Alliance (Sovereign Bank's Leasing Division) were surprised that both of the above funding sources were either closing their doors, or terminating their relationship with third party players. The combination of EUROPEAN AMERICAN BANK, GE TILDEN, AND NETWORK CAPITAL ALLIANCE made Long Island a powerful presence in the Leasing Industry. I am happy to report that Sovereign Bank not only is seeking relationships with third party originators, we are celebrating our two year anniversary later this month. All qualified parties who seek a relationship with a direct lender for both application only and full disclosure transactions should call our office. --------------------------------------------------------------------------------------------- Eastern Associatioin of Equipment Leasing Thursday Crabfeast The crabfeast in Baltimore was terrific. We had 90 people in attendance, 3 new members joining and 1000 crabs were consumed. Amfnyc@aol.com Thanks--Alison --------------------------------------------------------------------------------------------- Mellon US Leaisng and Mellon Leasing Leasing News reported in January from key employees the Mellon was sold. It was not officially announced until May. It appears GE is now closing the offices, after making its official announcement today---press release follows---- We have been getting requests to change e-Mail, as it definitely appears GE is closing down all of the Mellon offices earlier than planned. Several have called, and they have been packing up and it has been an emotional day for them.. Most have to be out definitely by Tuesday. No one wants to speak on the record as they will be looking for jobs, and don’t want any comments to hurt their chances, I am told. editor ############# ################### ############# GE Capital Completes Acquisition of Mellon US Leasing and Mellon Leasing - Manufacturer and Dealer Services
DANBURY, Conn GE Capital announced today that it completed the acquisition of two Mellon Leasing Corporation businesses. GE Capital's Commercial Equipment Financing business acquired Mellon US Leasing and GE Capital's Vendor Financial Services business acquired Mellon Leasing - Manufacturer and Dealer Services. The acquisitions were announced on May 3, 2001. Transaction terms were not disclosed. Mellon US Leasing will operate as GE Capital Commercial Equipment Financing and Mellon Leasing - Manufacturer and Dealer Services will operate as GE Capital Vendor Financial Services. The purchase reflects GE Capital's ongoing commitment to equipment financing. "By combining Mellon's 40 years of equipment leasing experience with our own vast experience and the largest, direct-to-end user sales force, GE Capital will be able to provide enhanced customer service and a broad array of financial products and services -- including SBA loans and insurance products, " said Paul Bossidy, President and CEO of GE Capital Commercial Equipment Financing. "This acquisition reinforces our dedication to helping customers generate more revenue and grow their customer bases through tailored solutions and the application of the latest e-business technology," said Bill Cary, President and CEO of GE Capital Vendor Financial Services. "We look forward to providing comprehensive financing programs and value-added services to Mellon's existing vendor partners." About GE Capital: GE Capital, with assets of more than US$370 billion, is a global, diversified financial services company grouped into six key operating segments comprised of 24 businesses. A wholly-owned subsidiary of General Electric Company, GE Capital, based in Stamford, Connecticut, provides a variety of consumer services, such as credit cards and life and auto insurance; mid-market financing; specialized financing; specialty insurance; equipment management, and specialized services, to businesses and individuals in 47 countries around the world. GE is a diversified services, technology and manufacturing company with operations worldwide. GE Capital Commercial Equipment Financing, a GE Capital company, serves a broad financing market from small businesses to Fortune 100 companies worldwide. Its portfolio includes more than 90 different equipment types, including trucks and trailers, corporate aircraft, manufacturing facilities, construction, medical and office equipment. GE Capital Vendor Financial Services, a global leader in developing and providing financial solutions and services to equipment manufacturers, distributors, dealers and their end users, has over $16 billion in served assets worldwide. Vendor Financial Services serves approximately 100 manufacturers, 4,500 dealers and currently has over 500,000 accounts in 33 countries. About Mellon Financial Corporation: Mellon Financial Corporation is a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world's leading providers of asset management, trust, custody and benefits consulting services and offers a comprehensive array of banking services for individuals and corporations. Mellon has $2.8 trillion in assets under management, administration or custody, including $520 billion under management. Its asset management companies include The Dreyfus Corporation and Newton Investment Management Limited (U.K.). #### #################### ##################### ################# CalFirst Bancorp Announces Fourth- Quarter Dividend
SANTA ANA, Calif--The board of directors of California First National Bancorp (Nasdaq:CFNB) today declared a quarterly cash dividend in the amount of 4 cents ($0.04) per share. The dividend will be payable on July 6, 2001, to all stockholders of record at the close of business on June 22, 2001. California First National Bancorp is a diversified financial services company with two primary businesses -- leasing of high- technology capital assets to businesses and organizations nationwide, and banking through a FDIC-insured national bank. ### ############ ############# #################### Willis Lease Finance Increases Debt Facilities to $305 Million
SAUSALITO, Calif--Willis Lease Finance Corporation (Nasdaq:WLFC) and its affiliates announced today that it has closed an agreement for a $115 million revolving credit facility with a bank group lead by Fortis Bank N.V. as Structuring Agent and National City Bank (NYSE:NCC) as Administrative Agent. With the closing of this agreement, First Union National Bank (NYSE:FTU) entered into an agreement to expand the warehouse facility for WLFC Funding Corporation to $190 million, increasing the company's total revolving debt facilities to $305 million. The three-year revolving credit facility is immediately available to WLFC, and replaces a $139 million term loan. In February, the warehouse facility for WLFC Funding Corporation, the company's wholly owned subsidiary, was raised to $180 million from $125 million. These and other borrowing facilities support the company and its subsidiaries in financing the lease portfolio. "With the sale of our subsidiary businesses completed last November, our financing needs have changed," said Charles Willis, President and CEO. "With no spare parts inventory to finance, we were able to reduce our revolving credit facility and increase our warehouse facility to expand our lease portfolio of jet aircraft engines. Our engine portfolio has more than quadrupled to $445 million in the past five years. The financial institutions financing our business are some of the world's largest and strongest banks. We are very pleased with the strong support and substantial caliber of the banks funding our growth." Earlier this month, WLFC reported first quarter net earnings from continuing operations increased 62% on 23% higher revenue, boosted by over $120 million in equipment additions to its lease portfolio since late November 2000. Net earnings from continuing operations were $2.5 million or $0.28 per diluted share on total revenue of $17.1 million for the first quarter ended March 31, 2001. In the first quarter a year ago, net earnings from continuing operations were $1.5 million, or $0.20 per diluted share, on total revenue of $14.0 million. About Fortis Bank Fortis Bank N.V., a subsidiary of The Fortis Group, is headquartered in Rotterdam, Netherlands. At December 31,2000, Fortis Bank's total assets were EUR 337bn., placing it 35th of the world's largest banks, according to Industry Week. About National City Bank National City Bank is a subsidiary of National City Corporation (NYSE:NCC), an $89 billion financial holding company headquartered in Cleveland, Ohio and the 10th largest bank holding company in the United States at December 31, 2000, according to American Banker. About First Union Corp. First Union National Bank is a subsidiary of First Union Corporation headquartered in Charlotte, North Carolina. According to American Banker, First Union was the sixth largest bank holding company in the United States with assets of $274 billion at December 31, 2000. About Willis Lease Finance Willis Lease Finance Corporation leases spare commercial aircraft engines, rotable parts and aircraft to commercial airlines, aircraft engine manufacturers and overhaul/repair facilities. These leasing activities are integrated with the purchase and resale of used and refurbished commercial aircraft engines. Leasing News Makes It on Lessors.Com I must thank Fred St Laurent of Management Recruiters of Melbourne, Florida, for writing an e-mail and “sticking up” for our newspaper. I don’t think we were taken seriously until he and other readers stated their good opinion of our efforts. We now are listed as one of the four leasing journals on line equipment leasing news. It is a honorable gesture. In turn, we are going to link to lessors.com site, as one good turn deserves another. We also will “plug” your site when it is “newsworthy,” which it very often is. I visit it often for news and other information. Thank you very much. Kit Menkin and staff www/lessors.com A privately held company backed by over 32 years experience in the equipment leasing and finance markets, Lessors.com is the only free access vertical market portal facilitating free search and free advertising of funding resources, employment, technology products, services, news and information to the online equipment leasing and finance markets. Finova Bonds Rise on GE Capital Sweetened Bid Bloomberg article By Helen Stock Finova Group bonds rose after GE Capital and Goldman Sachs Group sweetened the terms of the bailout offer it made to creditors of the bankrupt finance company two weeks ago. Finova bonds were bid at 91.5 cents to the dollar Thursday (6/7/01) morning, up about 2 cents from yesterday (6/6/01). Finova stock, which rose as much as 17 percent during the session, gained 1 cent to $3.23 in New York Stock Exchange trading. Bond and stock owners expect their holdings to be worth more as two rival suitor groups compete for Finova, which has $12.5 billion in assets. GE Capital and Goldman are sparring with Berkadia LLC, a joint venture between billionaire investor Warren Buffett's Berkshire Hathaway and Leucadia National Berkadia is are aligned with Finova's management. "We have two sides vying over them, topping each other. It's just what we need," said Greg Habeeb, portfolio manager for Calvert Group, which owns about $25 million in Finova bonds. The Scottsdale, Arizona-based finance company, which filed for Chapter 11 bankruptcy protection in March, began showing signs of troubles about a year ago after several of its borrowers failed. The two teams have been lobbying for creditors' backing of the plan, an important factor in getting the approval of a Delaware bankruptcy court. GE Capital and Goldman Sachs' new offer includes a $7.25 billion loan to pay debt holders, an increase from their May 24 offer of $7 billion, the companies said in a filing in U.S. Bankruptcy Court in Wilmington, Delaware. The filing, which the Wall Street Journal earlier reported, objects to Finova's request that a bankruptcy judge allow it to go forward with an offer from Berkadia. Finova officials are asking U.S. Bankruptcy Judge Peter Walsh to approve a disclosure statement about the company's reorganization plan that hinges on Berkadia's offer. Under the Berkadia plan, Finova will use a $6 billion loan plus its cash reserves to pay debt holders $7.35 billion, or about 64 cents per $1 of pre-bankruptcy debt and 3 cents of post-Chapter 11 filing interest for each $1 of their total claims. The rest would be organized into new 10-year bonds. On May 30, Berkadia responded to the rival bid by cutting the interest rate on its loan and raising the yield on its new bonds. Stamford, Connecticut-based GE Capital, the largest non-bank finance company, said its new plan offers increased liquidity, and a loan set at the London interbank offered rate plus 2 percentage points a year, which is lower than the Libor plus 2.25 percentage points offered by Berkadia. GE Capital and Goldman Sachs aren't asking to control 51 percent of Finova's shares once the company emerges from bankruptcy, the papers said. Berkadia's bid requires such an "ownership position," the papers said. The new GE Capital bid provides a 7.5 percent yield on bonds, instead of the 7 percent rate Berkadia is offering. GE Capital and Goldman Sachs argue that their bid "is in the best interests of creditors, equity interest holders and other parties because it could produce more valuable recoveries for those constituencies in these Chapter 11 proceedings," the papers said. GE Capital spokesman John Oliver declined to comment. ########### ################### ############################ DVI Selects Oracle Corporation for e-Business Solutions
JAMISON, Pa., -- DVI, Inc. (NYSE: DVI), a leading independent healthcare finance company based outside of Philadelphia, announced today that it issued an important contract to Oracle Corporation (Nasdaq: ORCL) to expand DVI's e-commerce solutions. Under this contract, DVI purchased the Oracle(R) database and Oracle9i Application Server in addition to Oracle Financials, Oracle Contracts and Oracle Consulting services to design and deliver an Internet based platform that will enhance customer on-line access to DVI financial solutions for the healthcare marketplace. (Photo: http://www.newscom.com/cgi-bin/prnh/20010116/PHTU006LOGO-b ) The first unit scheduled to implement the Oracle software will be DVI Strategic Partner Group, a small ticket-leasing unit based in Chicago, IL, with a rollout expected in the fall of 2001. Customers are expected to benefit through new efficiencies planned in the automated workflow, from application through documentation to closing, all of which will be achieved entirely through the worldwide web. Vendors are expected to benefit through the "self-service" applicant status and reporting features, which will allow them to access the status of sales financing applications in process. Michael A. O'Hanlon, president and chief executive officer, commented, "By teaming up with Oracle, DVI dramatically enhances customer access to our core financing products and speeds the execution time to complete transactions benefiting our vendors and leasing customers. This important e-commerce interface, with initial installation scheduled at DVI Strategic Partner Group, will support significant new vendor volume." DVI is a leading specialty finance company for healthcare providers worldwide. DVI finances medical equipment through offices maintained in the United States, Europe, Asia, Latin America and South Africa. DVI also offers lines of credit backed by healthcare receivables in the United States. Additional information on the Company is available at www.dvi-inc.com. |
