Headlines:

 

     Surprise! Surprise!  Bermuda based company Tyco International Buys CIT

        CapitalStream Closes $20 Million in Series "C" Financing

           ELA Launches LeaseAssistant.org Web Site

                Legal Authorities Close in on U.S.Capital, Santa Barbara, California

                           Plot Thickens at United Capital/Spectrum Leasing, Austin, Texas

                                 Netbank Gets Regulatory Authority

                                   E-Bills and E-Payments through E-Mail

                                       NEC Leasing Launches New Program

 

  New Feature added to LeasingNews.org website---

 

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                          Tyco International Buying CIT

 

NEW YORK (AP) -- Tyco International Ltd. is buying commercial lender CIT Group Inc. for about $9.2 billion in cash and stock in a deal that would allow the manufacturer to finance purchases of its wide array of products.

 

The deal announced Tuesday by Tyco -- whose products include electronic equipment, fire and security systems and disposable medical supplies -- would give CIT shareholders a 54 percent premium for their shares over Monday's closing prices.

 

L. Dennis Kozlowski, Tyco's chairman and chief executive, said buying CIT will help Tyco grow faster, while allowing the 93-year-old finance company to bolster its lending business.

Several manufacturing companies already have such arrangements in place. They include General Electric Co., whose GE Capital helps finance GE businesses and is a profitable financial services business.

 

Most CIT shareholders will get stock for their shares, but a Japanese bank that owns 27 percent of CIT will get cash. Tyco is paying 0.6907 Tyco shares for each of CIT shares, representing $35.02 a share in value based on Tyco's closing price Monday of $50.70 a share. But Tyco is paying $35.02 a share in cash to Dai-Ichi Kangyo Bank for its 71 million CIT shares.

The deal was approved by the boards of both companies but is subject to approval by CIT shareholders and regulators.

 

Investors gave the deal a mixed review. Shares of Tyco fell $5.68, or 11 percent, to $45.02 in midday trading on the New York Stock Exchange, where shares of CIT were up $7.45, or 33 percent, to $30.20.

CIT, a diversified commercial finance company based in Livingston, N.J, has $50.4 billion in managed assets, mostly loans.

 

As part of the deal, Albert Gamper, who has served as CIT's chief executive since 1987, will continue to run the business and become a member of Tyco's board.

Tyco is based in Bermuda, but has operational headquarters in Exeter, N.H. The company expects to generate sales of $37 billion this year.

 

  ( Note: There are many stories being written by the Financial Media, most have the theme

      that Tyco paid too much.  But as we say in buying wine, " If you really like it,  you  didn't

      pay too much." editor.

 

    ( for more on this story--Their press releases at end of report )

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  Huge Success Story, Especially in This Market to Company Well-Known in the

    Leasing Industry, who's executives participate at all Leasing Association Conferences----

 

                  CapitalStream hits financing goal with venture investors

 

 

'Flight to quality' helps   ( headline of the story )

Tuesday, March 13, 2001

By JOHN COOK

SEATTLE POST-INTELLIGENCER REPORTER

 

CapitalStream of Seattle has raised $20 million in venture capital to promote its online transaction and leasing platform for the financial services industry. Investors in the company include FTVentures, Banc of America, Polaris Venture Partners, Spectrum Equity Investors, Voyager Capital, Merrill Lynch Ventures and the Benaroya Co.

 

To date, the privately held company, formerly known as System One Software, has raised $47.5 million.

 

"The market climate has changed substantially over the last three quarters with the significant sell-off of not only tech stocks, but anything Internet- and dot-com-related," said Stephen Campbell, chief executive of CapitalStream. However, he said the 6-year-old company hit its financing goal and "benefited from a flight to quality" among venture investors who were looking for functional business models and strong management teams.

 

CapitalStream provides the back-end infrastructure necessary for banks, manufacturers and other companies conducting business -- especially financing of equipment -- to do business over the Internet. So far, more than 39 companies have signed up for the hosted service, including Banc of America, Textron and Siemens Financial Services.

"One of the reasons we are seeing so much success is that we are really helping traditional brick-and-mortar companies become more Web-enabled and more automated ... as opposed to hanging out a shingle and trying to attract consumers or businesses that are looking for commercial credit," Campbell said.

 

The company's competitors include Dun & Bradstreet and eCredit. A third company, PrimeStreet, recently closed down.

 

Dan Sholler, an analyst at Meta Group in Stamford, Conn., said CapitalStream and eCredit are considered the leaders in the emerging area of e-finance. But both companies face challenges, he said.

"To a certain extent, these companies are not in control of their own destiny," he said. "What will make this category successful is if people continue to invest in e-business arrangements and they extend that to include financing. It is inevitable that will happen, but the question is will it happen fast enough for these folks to survive and capitalize on the opportunity."

 

 

 More on CapitalStream Closing $20 Million in Series C Financing

 

  FTVentures and Others Invest in Leading Finance Automation Company

 

 The financing led by an investment from FTVentures with additional investment from existing

investors Polaris Venture Partners, Spectrum Equity Investors, Voyager Capital, Merrill Lynch

KECALP and the Benaroya Company.   The strong interest in CapitalStream by leading investors is

a result of two factors: CapitalStream's proven business model and its success in helping the

commercial finance industry to better automate customer management, transaction management and

integration with back office systems.

 

This round of financing will take CapitalStream to its break-even point, as the company moves

toward profitability.  CapitalStream has seen a steady increase in revenues, subscribers and

contract values since launching its network-enabled e-finance infrastructure in April 2000. 

Some of CapitalStream's key customers include Textron Financial Corporation, Siemens Financial

Services, Inc. and Bank of America.

 

"CapitalStream has been the beneficiary of the "flight-to-quality" that is occurring in the

venture community. This round of funding validates our networked solution, as well as our

leadership position within the commercial finance automation industry," said Stephen Campbell,

president and CEO of CapitalStream. "We will continue to improve our applications and services

with aggressive product development, while expanding our customer service. "

 

"CapitalStream is the leading solutions provider in this market segment and is well positioned

for continued success," said Richard Garman, General Partner of FTVentures.  "The CapitalStream

team has exceptional industry knowledge, a superior product set and a growing customer base.  We are very pleased to be a partner in helping the company continue to grow."

 

One of the "coups for CapitalStream was having Bank of America select them

for  Real-Time Credit Applications and Approvals for Its Small Business Clients

 

With CapitalStream, Bank of America small business clients can now get an answer in seconds when applying for business credit cards online. Under

the terms of the three-year service agreement, Bank of America will

subscribe to CapitalStream's automated online commercial finance transaction

system. With two million small business customers, Bank of America is the

leader in small business banking in the United States.

 

"Our goal is to provide clients with the online tools and resources to help

manage their business more efficiently and effectively," said Mike

Anzenberger, channel strategy and development executive for Bank of America.

"With the addition of the CapitalStream platform, our small business clients

can get quick access to the information they need, making it easier to run

their businesses."

 

In the first phase, small businesses using the Bank of America Business

Center at www.bankofamerica.com can complete an online business credit card

application and receive a response in less than a minute. In the future,

Bank of America small business clients will be able to use the CapitalStream

platform for automated equipment financing, business loans and lines of

credit.

 

"From submitting customer applications all the way through to the approval

process, Bank of America now has a complete online solution, without having

to build it from the ground up," said Stephen Campbell, president and CEO of

CapitalStream. "Our solution is the most complete, real-time way to conduct

e-commerce with business customers."

 

"We were looking for a better, more efficient way to serve our small

business customers' credit needs, and CapitalStream had the solution that

integrated with our front-end and credit management systems," said

Anzenberger. "It was fast to implement and it was very cost-effective."

 

Last year, Bank of America processed more than 250,000 small business credit

applications. Bank of America is also the leader in online banking, with

over three million customers and is adding an average of 130,000 new online

customers per month.

 

CapitalStream has a program for leasing companies, CapitalAdvantage, plus a

very low cost System 1 program for leasing brokers.

 

 

About CapitalStream

Seattle-based CapitalStream provides network-enabled e-commerce solutions for commercial

financing, a $4 trillion global industry.  The company provides infrastructure and tools that

enable finance companies and manufacturers to create branded financing sites, tailor finance

programs, build credit workflow, retrieve credit scores and content, and offer financing at the

point of sale.  CapitalStream, an established industry leader, has helped hundreds of financial

organizations increase their competitiveness, customer service and profitability.

To learn more, visit its Web site at www.capitalstream.com.

 

About FTVentures

 

Financial Technology Ventures invests in companies developing technologies that are transforming

the financial services industry.  FTVentures was the first venture capital fund in the U.S. to

focus on providing equity financing to companies with technology solutions that enable large

financial institutions to operate more efficiently or expand their products and services.  Many

of the world's leading financial institutions are FTVentures limited partners including: U.S.

Bancorp, Bank of America, BNP Paribas, National City Corp., Wells Fargo & Co., Deutsche Bank,

Credit Suisse Group, AIG, BANK ONE, Charles Schwab, CIBC, Fidelity National Financial, Fifth

Third Bancorp, Fleet Financial, HSBC, Key Corp, PNC Bank, Royal Bank of Canada, Sallie Mae,

Wachovia Corp. and Washington Mutual.

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ELA Launches LeaseAssistant.org Web Site; A One-Stop Educational Portal for Financial Decision-Makers

 

  

    ARLINGTON, Va.--(BUSINESS WIRE)--March 13, 2001--The Equipment Leasing Association (ELA) announced today the introduction of its LeaseAssistant.org Web site, a one-stop informational portal for financial decision-makers.

    Rich with information on leasing and strategic financing methods, ELA's LeaseAssistant.org provides potential lessees with equipment financing information to help them make informed equipment financing decisions.

    "ELA's LeaseAssistant.org provides objective answers to the questions companies may have about leasing equipment and demonstrates that this strategic financing option is a means of leveraging capital and controlling costs," noted Amy Miller, ELA's vice president of communications.

    ELA's LeaseAssistant.org is the online encyclopedia for equipment financing and leasing. This easy to use, easy to navigate Web site provides visitors with information including leasing basics, case studies, market research, leasing news, a detailed list of what can be leased, a checklist of questions to ask when negotiating a lease, the differences between a lease and loan, how to select a financing partner, and how to leverage leasing for business success. ELA is currently offering its members the option to license a customized version of this site.

    Organized in 1961, the Equipment Leasing Association (ELA) is a non-profit association representing companies involved in the dynamic equipment leasing and finance industry. ELA's mission is to promote the leasing industry as a major source of funds for capital investment in the United States and abroad. Headquartered in Arlington, Va., ELA has more than 850 member companies and a staff of 27 professionals. Equipment leasing is estimated to be a $280 billion industry in 2001.

    --30--DD/ph*

 

    CONTACT: ELA, Arlington

             Robin Baker, 202/293-8567

             rbaker@promarcagency.com

              or

             Stacey Wells, 202/293-8560

             swells@promarcagency.com

 

 

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              U.S. Capital, Santa Barbara, California

 

             The  Santa Barbara Sheriff's Department, the Senior Assistant for the Santa Barbara

 

County District Attorney and the FBI have assigned an agent to look into the many

complaints surrounding U.S. Capital.

 

I have talked with Mr. Gerald Franklin, the Ass't DA and he would be very desirous to hear from

all lease company entities that have suffered harm from the relationship.  Particularly, he

would like to hear about retained prepayments and other questionable acts.  He would prefer to

receive the facts, and contact information, over his fax machine at (805) 568-2398.

 

 

From what I understand, the FBI is interested, but the numbers have to be sizeable before they

will become involved.  It appears that they are only aware of a gross cost of equipment of

something over $300,000.  We know that there is much more that that.

 

 

To me, the more pressure we put on U.S. Capital, the better chance we will have of least getting a refund on some of these retained prepays.

 

Tom Cadle

Leasource Financial Services

 <tcadle@leasource.com>

 

  (  The more we get involved, certainly it will have an effect, but don't look for a check in 

   the mail soon.

    It is rumored this company has filed, or is filing bankruptcy, protection  under Chapter 11.

   The routine is to go through this, and when this stalling technique does not work, or there

    is evidence of fraud, it goes to Chapter 7,   where the creditors are involved in the

    dissolution, and if there is any  money to be divided from assets, after the attorneys and        court costs, you  may see something ( unless there is fraud ) and if you are a young man,       you  may live long enough to see some pocket  

  change. Look at the Leasing News   list of leasing companies in the last two years who have

  pulled this stunt.

    Your best hope it to help the legal authorities to not only demonstrate to

    others about ethics and legal obligations, but criminal charges may be of faster

    financial benefit to you..

    I would like to quote my late mentor Mac Pollock of Key Lease, Redwood City,

    California.  " You sleep with dogs, you get fleas."  editor )

 

-------------------------------------------------------------------------------------------------        Dean Menzel Speaks Up!!!

 

As a funder that has been consistently in the market for over 25 years with the same portfolio, I can only wonder why brokers and other sources do business with people or companies they don't actually know personally.   When will they learn that the time and money lost in dealing with unknown

funding sources just isn't worth it  ... including their reputation.  Some would call it their just reward ... but I hate to see anyone get hurt.  Let us all get a little smarter ... quickly.

 

Paul J. Menzel, CLP

Senior Vice President / General Manager

Leasing Division

SANTA BARBARA BANK & TRUST

P.O. Box 1199

Santa Barbara, CA 93102-1199

1 South Los Carneros Road

Goleta, CA 93117

(805)560-1650

PaulM@sbbt.com

 

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    United Capital/Spectrum Leasing, Austin, Texas   

 

 

The plot thickens and it gets stinky... It's my understanding:   Steve

Dallas and Jack Lieberman were partners in United Capital and started

Spectrum Funding, 4th quarter 1998 as a Broker group.  The original  name

was, Countrywide Leasing; later changed to, Spectrum Funding Group.  The

marketing was directed to the lessee with an automated phone message system.

 

Jack and Steve split their partnership last year after United Capital lost

funding from Liehman Bros. and Old Kent.  Steve is running both United and

Spectrum a few people.  As you are aware from other Brokers, United Capital

is providing the Vendor and lessee information to Spectrum.  Spectrum is

currently contacting the customers who originated from other Broker's

databases and presented to United Capital in good faith; this information

should not be shared or sold.  Broker customers are currently being

solicited.  Spectrum is working from prior approvals that were pulled by

United Capital.  They are misrepresenting their association to our

customers.  Both United and Spectrum occupy and share the same office space

and phone system.

 

It's my understanding that Jack Lieberman and Steve Dallas are both

landlords of the shopping center.  Jack Lieberman owns Countrywide Leasing,

LLC.    If you look at the site: countrywideleasing.com, Jack Lieberman is

their CEO.  Also, the names of the other people on their website... Jack,

Melissa, Dan, Tom, Matt, are all former employees of Spectrum & United

Capital and hired by Jack Lieberman.

 

The address location for:  Spectrum Funding Group, Spectrum Leasing, United

Capital, United Leasing (told to one of my customers) and Countrywide

Leasing, LLC et al, is the same.

 

http://www.countrywideleasing.com/aboutus.htm

 

Thanks for your interest in helping to promote professional and quality

business ethics within the industry.

 

 Name With Held

 

---------------------

 

   Why Are You Surprised????

 

Why are people so surprised to learn that these two companies are one? 

There are numerous other lessors who have vendor direct business sides of the

company.

 

The only thing that is not like the rest of the lessors, is that company is

nothing more than brokers.  They still use and I have seen the approvals and

declines from Manifest, Fischer-Anderson, Financial Pacific, etc. 

 

People like Steve and Peter should not be allowed to broker business until

they have cleaned up their mess. 

 

When do we, as an industry, start to take care of the people and companies

that give us all a bad name?  It seems the industry organizations have kept a

low profile when they should have become more vocal about doing business with

these people.

 

Keep up the good work

 

Name withheld    

 

  ( Yes, it appears there are leasing associations that look the other way, as there

     appears to be little enforcement of a Code of Ethics.editor )

 

-----------------------------------------------------------------------------------------------------------------

 

                 Sunday Sermon

 

This has been so well received, that we will continue this feature, plus

archive them. http://www.leasingnews.org/Sunday.htm  Each of our pages

have a button at top, to "Send to a Friend." 

 

  I am a first time receiver of your "Leasing News" & "Sunday Sermon" - This

  is not what I was expecting to receive  - (Excerpt from I Love You,

  Ronnie) - but certainly is a welcome refreshment - if more men in this

  country loved their wives in this manner, society would not have a "dim

  view" of the marital bond and marriage would be held in the high regard

  that God intended - I am confident you feel the same way about your wife -

  otherwise you would have not printed this excerpt - thank you for helping

  set the example.

 

 Mark B. Fonseca

 <ez2buy@bellsouth.net> 

                       +             +

 

 Thanks for the suggestion and the excerpt.

 

  Archie Julian

 <JulianA@ExchangeBank.com>

 

 

 What a wonderful way to remember the ones we love so dearly and most especially what a  

    tribute to a very great human being.

    Were you able to see the dedication of the Aircraft Carrier, the Ronald Reagan.  How more        beautiful could this have been then to dedicate this magnificent ship on Ron and Nancy's    

    49th Wedding Anniversary.

 

    Thank you,

 

    Cindy

    Cynthia Spurdle

  <CWSpurdle@msn.com>

 

    ( Whether you are a Democrat or Republican or whatever, this book of love

      notes is one of the most inspirational, showing no matter how busy

      or where he was, he wanted to tell his wife how much he loved her.

      These were not written for the public or for public relations, but

      came from his heard. editor ).

 

 

 

      Wow.  Cool Kit.  Thank you.  I read/listen to all the Jim Rohn, Og

Mandino etc. I can get my hands on.  Today's "sermon" is refreshing and

inspiring.

      I really appreciate your service.  In the office we read and discuss

every issue, I refer everyone I know to Leasing News.  Keep up the great work.

 

      Troy Lovick

      Equipment Financing Group Inc.

      Troyest1@aol.com <