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September 24, 2001 Kit Menkin’s Leasing News www.leasingnews.org _________________________________________________________________ Help American Liberty.org _____________________________________________________________ Headlines--- MicroFinancial Closes $49MM On Balance Sheet Securitization Fitch Finance and Leasing Company Conference Call Summary Comdisco Announces Executive Management Appointments Patriot Commercial Leasing Alliance with Mitsui Machinery Distribution TELUS realizes C$147M as it exits equipment leasing business USCS Equip. Tech. Partners with Citicapital Equipment Finance Certified Leasing Professional Web Site up and running United Association of Equipment Leasing Donation to Red Cross Name With Held Criticism Continues Sunday Sermon---Readers Don’t Like “Historical Facts.” The List is Up-dated ### denotes press release __________________________________________________________________ The following company has many complaints, as per: http://www.geocities.com/leasescamm/ ### ################ #################### MicroFinancial Inc. Announces the Closing of A $49MM On Balance Sheet Securitization WALTHAM, Mass.,) -- MicroFinancial, Incorporated ("MFI") closed a $49MM on balance sheet securitization on September 21, 2001. "This is now our 9th securitization and it was negotiated during a time of increasingly tight capital markets. The terrible events of September 11 caused us to delay the closing by a few days. Rothschild Inc. was the Placement Agent. The results of the various reviews of our company by the auditors, rating agencies, insurance company and investors, together with our more than 15 year track record of financial success allowed us to close this facility even in today's time of economic and political upheaval" says Richard Latour, Executive Vice President and COO, CFO. "Our long-standing strategy of capitalizing the company with a conservative balance sheet structure clearly is paying back in times like this. For many specialized financial intermediaries with more aggressive capitalization structure obtaining sufficient re-financing capital has become a very difficult. At this point we have less than $100 Million outstanding on our $192 Million bank line and our policy of diversifying our major sources of refinancing capital is also clearly paying back" 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 that they are dealing with a leasing company that over the past 15 years has proven its ability to secure sufficient and economic refinancing in most any economic environment" concludes Richard F. Latour. 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 profitable 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 Inc. Richard F. Latour 781.890.0177 #### ################################## ##################### Fitch Finance and Leasing Company Conference Call Summary On Sept. 19, 2001, Fitch conducted a conference call to discuss our initial impressions of the key issues and rating ramifications for insurance companies, investment banks, commercial banks, and finance and leasing companies stemming from the attacks on the U.S. on Sept. 11, 2001. Below you will find short summaries of the key points made and more detailed comments in the call for the finance and leasing industry. A replay of the conference call is available through Friday September 21, 2001. Callers can access the taped version by dialing 1-800-642-1687 in the U.S., or 1-706-645-9291 from international locations, using access code `1881199'. Finance & Leasing Company Summary Fitch's finance and leasing universe continued to operate with little if any disruption and most are well positioned to address any short term business disruptions. However, there are a few names that have material exposure to sectors, which have or will likely be impacted by the tragic events on Sept. 11, 2001. Notably, one lessor (GATX Financial Corp) with substantial aircraft exposure was placed on Rating Watch Negative on Sept. 18. While Fitch believes American Express is well positioned to absorb the initial impacts of business distribution in its travel and related business, the Rating Outlook was changed to Negative to reflect longer term concerns about how a potentially significant and extended decline in these segments, as well as others, may have on operating performance. In the near term we continue to focus on airline, leisure (including resort and timeshare), car rental, as well as related exposures across financial institutions. In addition, we will monitor underlying trends in both consumer and commercial finance, and will wait and see how these events will impact what was already a deteriorating economic environment from an operating performance, credit quality, and capitalization perspective. Summary of Conference Call Points - Finance & Leasing Commercial Finance Prior to the events of Sept. 11, 2001, the U.S. equipment finance sector had already entered a period of economic weakness, and a recession in certain sub segments. Fitch's outlook for the sector, based on macro and micro data, was negative. For the sector as a whole, the impact of the events of Sept. 11, 2001 may be wide ranging and is still being studied. Two sectors of the commercial finance and leasing sector will be affected immediately. Aircraft Finance, Car Rental, Aircraft Lessors Expected defleeting by domestic airlines due to announced reductions in flight schedules. Results in increased equipment available for lease. Although it is expected that older equipment will be returned first, the valuations of all equipment could be pressured downward. Surplus equipment plus lower demand by airlines globally for flight equipment is expected. Negative implications for lessors that rely on gains from the sale of equipment as a large component of pre-tax income. Concerns regarding companies that sell aircraft to help manage leverage. Actions: GATX Financial Corp. placed on Rating Watch Negative on Sept. 18, 2001; closely monitoring the other aircraft lessors. Car Rental Companies Before Sept. 11, 2001, the operating environment was difficult due to excess supply due to the fall off in business travel. Through Labor Day, solid transaction growth in 2001 due to leisure business; pricing remained challenging. Yielding flat to down results for the major rental car companies. Lower leisure business is expected for at least the remainder of 2001 due to the public's reluctance to fly. The post-Sept. 11, 2001 operating environment is expected to be weak. Car rental companies have already begun defleeting to adjust their vehicle inventories downward following the end of the summer season. Additional defleeting may be required given the current conditions. The current operating environment may result in a rationalization of industry participants with one or more companies failing. ### ##################### ########################## ________________________________________________________________ Certified Leasing Professional Web Site The CLP Foundation is proud to announce the arrival on the Internet of our own web site --- www.clpfoundation.org. We would like all members of the leasing community to take a few minutes or more to visit the site to learn about the Foundation and exactly what the Certified Lease Professional (CLP) designation means and who the CLP's are in our industry. With the changes in our industry over this past year, many of our CLP's have relocated and we have yet to catch up with them. As you are browsing through the list of our current CLP's and find an individual who you know is now with a new company please send me an E-mail with the updated information -- cindy@clpfoundation.org. We want thank those who have supported us in our new endeavor and look forward to serving the leasing industry by helping to raise the professional standards and encouraging continuing education and greater industry participation by leasing professionals. Thank you, Cindy Spurdle, Executive Director CLP Foundation PH: 610/687-0213 FAX: 610/687-4111 Email: cindy@clpfoundation.org __________________________________________________________________ ### ############################# ########################### Comdisco Announces Executive Management Appointments
ROSEMONT, Ill--Comdisco, Inc. (NYSE:CDO) announced today that Michael A. Fazio, 39, has been named to the newly created position of president and chief operating officer and chief executive officer, Europe, and that Ronald C. Mishler, 41, has been named senior vice president and chief financial officer, replacing Mr. Fazio. Norman P. Blake, who had been serving as chairman, president and chief executive officer, continues as chairman and chief executive officer. All appointments are effective immediately. "With these appointments today, we've taken an important step to further strengthen Comdisco's management effectiveness at a pivotal time for the company," said Norm Blake, chairman and CEO. "Michael and Ron have abilities and experience that should prove invaluable in helping to guide Comdisco through the reorganization process toward our goal of emergence from Chapter 11 early in 2002." In his new position, Mr. Fazio will have direct responsibility for Comdisco's European Operations, its Ventures division and its Finance operations, reporting to Mr. Blake. Mr. Fazio joined Comdisco in July 2001 as executive vice president and chief financial officer. Prior to that, he was president and chief executive officer of Pretzel Logic Software, Inc. From 1999 to 2000, he was executive vice president/managing director and chief operating officer - Americas for Deutsche Bank AG. Mr. Fazio began his career with Arthur Andersen in 1983, serving in increasingly responsible positions in Andersen's Financial Market Industry Practice, including partner-in-charge of its New York Banking, Brokerage and Investment Banking Industry Practice until 1999. In his new position, Mr. Mishler will be responsible for Comdisco's Finance, Treasury and Accounting functions, reporting to Mr. Fazio. Mr. Mishler joined Comdisco in July as senior vice president and treasurer. Prior to Comdisco, he served as senior vice president and treasurer of Old Kent Financial Corporation from 1998 to 2001. Before that, he was vice president and treasurer of USF&G Corporation from 1996 to 1998, and from 1984 to 1996 he held various financial analysis and management positions at Heller International Corporation. Comdisco, Inc. and 50 domestic U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Illinois on July 16, 2001. The filing allows the company to provide for an orderly sale of some of its businesses, while resolving short-term liquidity issues and enabling the company to reorganize on a sound financial basis to support its continuing businesses. Simultaneous with the filing, Comdisco also announced the proposed sale of substantially all of its Availability Solutions business to Hewlett-Packard Company for $610 million. Closing of that transaction is subject to a court-supervised auction process. Comdisco's operations located outside of the United States were not included in the chapter 11 reorganization cases. All of Comdisco's businesses, including those that filed for chapter 11, are conducting normal operations. Comdisco is continuing to pursue other strategic alternatives to create value for its stakeholders, including the potential sale of its leasing businesses, as well as the restructuring of its Ventures group. The company has targeted emergence from chapter 11 during early 2002. About Comdisco Comdisco (www.comdisco.com) provides technology services worldwide 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, managed web hosting, storage and IT Control and Predictability Solutions SM. Comdisco offers leasing to key vertical industries, including semiconductor manufacturing and electronic assembly, healthcare, telecommunications, pharmaceutical, biotechnology and manufacturing. Through its Ventures division, Comdisco provides equipment leasing and other financing and services to venture capital backed companies. #### ################################## ############################ United Associations of Equipment Leasing Donates to the Red Cross The UAEL Board of Director's passed a motion to donate 2 1/2% of registration revenue to the American Red Cross Relief Fund from the 2001 Annual Conference & Exposition in San Antonio, TX October 25th - 28th. We are also in the process of finalizing details to hold a blood drive during this event. For those of you who have not yet registered, the Board of Director's also passed a motion to extend Early Bird Registration indefinitely for ACE 2001. Because of the dedication of the UAEL leaders to our association, our industry and our nation, everyone attending ACE 2001 will be making a difference. UAEL Leaders Make A Difference! Thank you to President Chuck Brazier, CLP; Vice President Bob Fisher, CLP; Secretary/Treasurer Bette Kerhoulas, CLP; Immediate Past President Bob Rodi, CLP and Board Members Brent Hall, CLP; Steve Jenkins, Terey Jennings, CLP; Theresa Kabot, CLP; John Kruse; Larry LaChance, CLP; Curt Lysne, CLP; Jim McCommon, CLP; Jerry Newell, CLP; Peter Stommel, CLP and John Torbenson. The leaders and staff of UAEL look forward to seeing all of you in San Antonio! Joanie Dalton - Managing Director UAEL - United Association of Equipment Leasing 520 Third Street, #201 Oakland, CA 94607 (510) 444-9235 x27 (510) 444-1346 fax joanie@uael.org www.uael.org --------------------------------- Name With Held---Criticism Continues/ Although we disagree on the name withheld issue, I very much respect the fact that you include views that are critical of your own newsletter. This takes courage. Thank you for setting a great example. Pat P.S.-Feel free to print this. Patrick Byrne: Balboa Capital ~~ You say that Newspapers have been doing this for years...but those are reporters who are gathering info and then passing it on. You are printing direct letters from people who don't sign their names. Find me one paper that will publish an editorial letter to the editor without your name and telephone number. If Leasing News wants to write their own articles using unnamed sources thats fine...but to print direct letters from people who will not stand up behind their own beliefs is not right. Sincerely, Deborah J. Monosson President BOSTON FINANCIAL & EQUITY CORPORATION 20 Overland Street Boston Massachusetts 02215 617-267-2900 617-437-7601 Fax Visit us at http://www.bfec.com ___ The responses of others criticizing the "name withheld" are from those who really do not know what "reporting" is all about or what you do to confirm a story and the general state of the matter. It does emphasize the importance of thorough investigation and not just the gossip of one individual. You need collaboration on the stories or rumors to make sure you're reasonably accurate. It is also important for you to explain what is going into your investigation. The fact that you are willing to print both sides of the story shows the fairness of what you are doing. If you need an "on the record" response for publication, let me know and I will produce one for you. I want to support you as much as possible. Let me know. Name With held ~~~ As I mentioned previously, I could elaborate for hours. That is not my intent, my only intentions are to help victims of Balboa recover and make others aware to the possibilities. Name With Held What is unfortunate is the hundreds of Lessee's that are not able to mount a defense publicly or legally, those are the ones that suffer major losses and no one but Balboa knows. From the way I see it in this case and all the others Name With Held I was one of the individuals who commented on Balboa in your past newsletters and did so anonymously. I would like to respond to those who have condemned the veil of anonymity. I agree with you Kit, in that a key element of any journalists career is his sources. Does anyone remember Watergate? How would that story and piece of American history have developed without "Deep Throat"? I commend you for justifying and protecting your resources. ( name with held ) ~~~ I am sending you copies of the lease with the 180 day clause. I sell against Balboa and have a list of four people who have been had with this lease contract. When I bid against Balboa, I give the lessee the four names to call plus send them a copy of the 180 day clause. Even when I am higher, the lessee understands and I always get the deal. (Name with held ) I have a sister that works for Balboa...she received your newsletter, as did others in the office (Scottsdale). Keep this between you and I, please. Keep up the great work. ( name with held ) For the Record: Leasing News prints all sides, and that was one of the issues, that is what it is about From |