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| September
1 , 2000 To
regularly receive Leasing News kitmenkin@leasingnews.org ---also ON LINE at www.leasingnews.org--- (report to be posted today )
MANIFEST OFFICIAL PRESS RELEASE ON THE SALE WE REPORTED YESTERDAY U.S. Bancorp to Acquire Lyon Financial U.S. Bancorp announced that it will acquire Lyon Financial Services, a wholly-owned subsidiary of the privately-held Schwan's Sales Enterprises, in Marshall, MN. Terms were not disclosed. Founded in 1979, Lyon Financial specializes in small ticket lease transactions including office technology such as copiers, computers and telephone systems, as well as medical, construction and other types of equipment. Lyon Financial has $1.1 billion in assets, $460 million in lease originations for 1999 and manages more than 80,000 contracts for clients in all 50 states and Canada. U.S. Bancorp said that all 423 employees will be offered employment and that Lyon Financial will continue to be located in Marshall. Lyon Financial will become a division of U.S. Bancorp Leasing & Financial, which has over $3.6 billion in leases and loans. U.S. Bancorp said it expects the acquisition to close in September. U.S. Bancorp's leasing activities report to Andy Cecere, chief financial officer of U.S. Bancorp, and are directly managed by Chuck Langer, president of U.S. Bancorp Leasing & Financial. Cecere said, "The combination of Lyon Financial with our existing leasing activities will produce benefits for clients of both our companies and creates excellent referral opportunities. Lyon Financial has well established niches in the leasing business, while U.S. Bancorp Leasing & Financial has focused on being a national funding source for companies in almost every market sector. We intend to support Lyon's continued growth while preserving its successful business approach." Don Polfliet, chief operating officer of Lyon Financial will continue to lead the company reporting to Langer. Schwan's president and CEO Lenny Pippin, said, "The sale of Lyon Financial Services to U.S. Bancorp was a strategic decision. It will allow us to focus our energy and capital on the growth and expansion of our core business -- the manufacturing, distribution and sale of high quality food products. The sale is also exciting news for the community of Marshall. U.S. Bancorp will become one of the largest employers in Marshall and substantially enhance the financial diversity and stability of our area's economic base." U.S. Bancorp also announced a $100,000 commitment in grants to nonprofit organizations in the Marshall community over a four-year period. U.S. Bancorp's Langer said, "Through this acquisition, U.S. Bancorp joins the Marshall community as a major employer and corporate citizen. We are deeply committed to supporting the communities where our employees work and live and we are excited to extend that tradition to the Marshall community." Minneapolis-based U.S. Bancorp, with $86 billion in assets, is the 10th largest financial services holding company in the nation and operates approximately 1,000 banking offices in the Midwest and West. ( many comments from brokers with concerns about "business as usual", but see story below---editor ) What the Sale Means--Brian Bjella I think the letter we sent summarizes our position. I would like to go on record as saying this partnership with U.S. Bancorp is a win for all the parties involved. The size and growth of Lyon Financial and The Manifest Group requires a tremendous amount of capital and resources. Couple this with Schwan's pursuit of growing their multi-billion dollar food business and they were faced with a very interesting strategic decision. The Manifest Group is in the best financial and portfolio condition ever. At no time was LFS or The Manifest Group up for sale. The President of U.S. Bank resides on the Schwan's Board of Directors and approached the board with this solution. We all agreed that it was a great direction for us to take and allows U.S. Bancorp to diversify into small ticket leasing. The Manifest Group will remain the same, they are looking to build or find a 50,000 - 60,000 square foot building in Marshall (not many unoccupied buildings of this size in Marshall). The management, employees, values and philosophy will all remain intact. We are excited about the potential product offerings we can leverage from U.S. Bancorp and offer to the broker/lessor community. U.S. Bancorp is very supportive of our business model and stands behind our stated insurance policy from 1987: "Your lessee and vendor lists will remain confidential to The Manifest Group. At no time will this information be shared with anyone outside The Manifest Group. This policy holds true even if your company is no longer doing business with The Manifest Group." We have held true to this for 13 years and will remain the same - your database is secure. We are extremely excited for what the future holds for all of us. Business and usual and appreciate everyone's support during the transition over the next few months. Brian Bjella Executive Director of Sales The Manifest Group 800-325-2236 brian.bjella@themanifestgroup.com Merrilees Requests Correction to "The List" I am concerned about the facts in some of your reports. You have told me there is a strong desire to be factual. Recently there have been two reports about Textron that are not true. You state in this report that NationsBank Leasing was bought by Textron and is no longer doing broker business. The Business Leasing Group of NationsCredit (not NationsBank) was sold to Textron and we still do broker business. This is also twenty months after the fact. Merrilees, Jim" JMerrilees@TFC.Textron.com ( Correction is made, and regarding time element, this will be discussed with Leasing News Advisory Board for decision---editor ) UniCapital Announces Extension of Bank of America Amendment MIAMI--(BUSINESS WIRE)--Sept. 1, 2000--UniCapital Corporation (NYSE:UCP) today announced it has reached an agreement with Bank of America, N.A., its principal financial creditor, to continue through Oct. 16, 2000, the amendment of certain terms of the company's revolving credit facility with Bank of America. The company also said it is discussing with Bank of America various options regarding the company's outstanding indebtedness and operations. Under the terms of the continuing amendment, UniCapital's maximum amount of borrowings under its revolving credit facility would be reset to $255 million. Further reductions in the commitment would take place only in the event proceeds are received from the sale of certain assets. Tal Briddell, Chief Executive Officer of UniCapital, said, "I'm pleased with the tone and progress of our conversations to date with Bank of America." UniCapital Corporation provides asset-based financing in strategically diverse sectors of the commercial equipment leasing industry. Headquartered in Miami, UniCapital originates, acquires, sells and services equipment leases and arranges structured financing in the big ticket, middle market, small ticket and computer and telecommunications segments of the commercial equipment leasing industry. Certain statements contained in this press release (including, without limitation, statements regarding the Company's relationship with Bank of America and statements concerning efforts to reposition the Company's total debt package) may be deemed to be forward-looking statements that involve risks and uncertainties. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, and should be read in conjunction with the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 1999, as filed with the Securities and Exchange Commission. Those risk factors include, among others, limitations imposed by the Company's credit facilities, risks related to the need for additional capital, risks related to internal growth and operating strategies, interest rate risks, risks related to fluctuations in quarterly operating results, risks related to consummating securitization transactions and other risks. These risks and other factors could cause actual results to differ materially from those expressed or implied in any forward-looking statements contained in this press release. In addition, results may vary as a result of factors set forth from time to time in the documents filed by the Company with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements to reflect actual results or changes in the factors affecting such forward-looking statements. --30--flb/ny* CONTACT: Investors Contact: UniCapital Corporation, Miami Jody Campbell 305/899-5000 jcampbell@unicapitalcorp.com Directional Funding "Refues" NAELB tm Fax to Its Members oLease FAX COVER SHEET To: Leasing Mews From: Sean Wheejer Fax ~ Faa # (559) 276-7941 Attn: Kit Menkin Tel # (539) 275-6558 MESSAGE: Just thought I would drop you a line to set the record straight Directional Funding is now One Lease we have never had a claim filed with any organization EVER. You will notice that throughout this concern no organization has stepped forward with written documented proof that we have violated any laws, or rules. We have in house all written documentation to prove what we are saying. We challenge anyone to prove otherwise. There is a reason tbst several of the Monitors top 100 leasing companies have contacted us over the past year. We have 162 current brokers that are very satisfied with our service, and have the references that we will be happy to provide to anyone at anytime. We also have several Super Brokers that currently use our company. Our obligation is to serve our brokers (not others). We are members in good standing with the BBB and UAEL and have 2 CLP's on staff, in house legal, and in house Accounting. It is funny how people keep saying what they feel we did wrong but nobody is coming forward with proof but us. Sean Wheeler Thank you ( we have sent copy of fax to Joesph G Bonnano, Legal Counsel for NAELB--editor ) Rumors Not Confirmed We have been hearing rumors for months that Imperial Business Credit is suing brokers and threatening suit of brokers for defaulted leases as a normal course of their business when there is no violation of reps and warrants. Recently a former employee told me that one of the Imperial executives who left and went to Denver initiated the policy in order to make up for Imperial losses caused by their own poor credit and collection procedures. ( editor: I have not been able to confirm or deny this, although I do assume this is a standard business practice if a broker or discounter has made an error, whether or purpose or not, for a lessor to pursue. The following is from a former officer of one of the companies, high up and highly reliable, that I am withholding his name to allow Lease News to quote him: "I doubt that they'd be doing it JUST BECAUSE - that is a waste of time. I remember recommending cutting people off and suing them MANY times after we found out some of the lies and misinformation sent our way. I can't see XXXXXX suing without a rep and warranty breach." 38 Leasing Companies Major Changes American Business Leasing ( gone ) Balboa Capital ( Founder Byrne pushed out/other changes ) Bankvest (bankrupt) Bombadier ( reported having problems, not confirmed ) Charter Financial ( purchased by Wells Fargo ) Commerce Security ( closed to leasing broker program ) Copelco ( sold to Citibank ) Dana ( sold off, active as captive ) DVI Capital ( out of broker ) eLease ( management team let go ) Fidelity ( acquired by EAB, a wholly owned subsidiary of ABN AMRO Bank N.V., headquartered in the Netherlands, raising funds ) Finova ( out of market place ) Franklin Bank ( no more leases ) Imperial ( sold portfolio ) Leasing Corp of America ( for sale below book value ) Leasing Solutions ( bankrupt ) Liberty Leasing ( closed, California company ) Linc Capital ( out of vendor and broker business, Nasdaq halts stock sales, $13.4 loss last quarter ) Manifest Group--( purchased by US Bancorp Leasing and Financial ) Matsco Financial ( purchased by Greater Bay Bank ) Merit Leasing ( gone ) METWEST LEASING CO. Spokane WA. ( advising brokers that they have run out of funds so they are unable to fund a transaction we have there for funding. ) Metrolease--reports closing operation, will not confirm nor deny,many serious rumors floating around the marketplace.) Nations Credit ( sold to Textron*) *"The Business Leasing Group of NationsCredit (not NationsBank Leasing) was sold to Textron and we still do broker business," Jim Merrilees. New England Capital ( 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. Newcourt ( sold off ) Onset Capital ( Irwin buys 87% equity ) Orix ( closes small ticket vendor division in Portland, Oregon, "Business as usual (in New Jersey and with brokers)," says Steve Geller ) Phoenix ( both divisions ) Prime Capital ( "yes and no" sold off, may be negotiating ) Rockford ( sold to American Express ) SDI ( closed to broker programs ) SierraCities ( post $7.7 million second quarter loss, rumors abound ) T&W ( bankrupt, lost their listing ) Transamerica ( sold ) Unicapital ( $11.4 million first quarter loss chairman,CEO,CFO resign, 38 employees cutback, 8/23 BSB to use other funders reported, rumor that BSB will be "spun off", not confirmed and appears to be in the rumor stage right now. Good news, 9/1 Bank of America renews revolving credit line. )) United Leasing ( re-financing ) USA Capital Leasing ( gone-bk ) |
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