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Business News Impacting the Leasing Industry
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PETRODOLLARS AND U.S. LONG TERM INTEREST RATES |
| By: Ron Caruso |
| The U.S. economy has long had wonderful “friends” subsidizing our
borrowing costs: Asian central banks. These banks have tended to invest
their significant surpluses, derived from exports, in low-yielding
dollar-denominated U.S. Treasuries. This has enabled the U.S. to finance
its current account deficit at very low rates, and bolstered the value
of the U.S. dollar against their respective currencies, allowing the
U.S. consumer to purchase more goods. Basically, these central banks
have prioritized exchange-rate policy, at the expense of seeking a
higher yield for their investment. However, there is another mega-source of U.S. dollars in the market: Petrodollars. Oil-producing nations are challenging Asian central banks as the biggest source of cash in world financial markets. However, unlike the investment philosophy and priorities of Asian central banks, they are seeking to invest these petrodollars in other investment alternatives, such as real estate, stakes in corporations, private-equity funds and hedge funds. What is ominous about this scenario, is the growth trend. The current-account surplus of Petrodollar countries like Kuwait and Norway according to the IMF, is projected to increase to $311 billion this year, from $242 billion last year. In the same report, the IMF projected the surplus in Asia to be $253 billion this year, down from $263 billion last year. It is both the growth trend of petrodollars and their investment philosophy that is of concern to the U.S. In essence they are seeking other alternatives to the so-called “riskless” assets favored by Asian central banks. In some ways, a similar situation exists with regard to U.S. corporations. U.S. firms continue to stockpile their cash even as their earnings continue to rise. They evaluate the alternative uses for these funds, including stock repurchase, dividend increases and acquisitions, seeking the most effective use for these funds. As an example, some 174 S&P Industrial companies held $295 billion in cash for the first quarter of 2006. This does not include financial firms or utilities that generally hold onto a great deal of cash normally. The world is awash with money seeking investment opportunities-sound familiar? Last month, Fed Chairman Ben Bernanke told Congress that the U.S. needed to keep its securities “attractive” to foreign investors. From Economics 101, this means maintaining the value of the U.S. dollar. How is this done? There are two options: 1) decreasing our current account deficit to strengthen the credit standing of the U.S. dollar and/or 2) by increasing the interest rate which we pay to buyers of our debt. His options have major implications. Turning off the spigot of spending by the U.S. consumer would have a multiple impact, some good and some not so good. Although it might decrease spending on imports, it is impossible for this approach to be ultra-selective, and thus it would also harm the vitality of our own economy, heavily dependent on consumer spending for goods and services. Additionally, as the cost of U.S. borrowing increased, so too would the cost of corporate and consumer borrowing. Unfortunately, as the ECB and the UK central bank increase their prime borrowing rates, (see related story below)it becomes an international bazaar for governmental securities, with interest rates being a primary factor for consideration. At a time when the Middle East is once again reaching a boiling point, the oil exporters and their petrodollars are becoming a giant influence over the U.S. and other capital markets. Beyond this, they are also becoming a significant geo-political force that could significantly impact the resolution of issues in the Middle East and worldwide. The cornerstone of the U.S. as the world’s major superpower is not only our military might, but also our economic strength. A severe blow to our economy could have a ripple effect beyond our shores to the entire world. Let’s hope dialog and enlightened self-interest will compel all parties to recognize the interdependence of all in the world today and act accordingly. Stay tuned. |
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ASDI Announces Upcoming Meetings |
| The Association of Service and Computer Dealers International (ASCDI)
is a worldwide association representing IT companies that provide
hardware, software, maintenance services, leasing services, business
solutions, technical support and value added services has announced its
2007 meeting schedule:
ASCDI SPRING CONFERENCE 2007 - APRIL 18 - 21 - LAS VEGAS, NEVADA ASCDI EUROPEAN CONFERENCE 2007 - JUNE 7 - 9 - ROME, ITALY |
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B of A Closes In On Citigroup |
| Bank of America, a financial institution that derives most of its revenue in the U.S., is narrowing the value gap between itself and the world’s number one bank, Citigroup. Shares of B of A have increased in value by 63 percent in the past five years, increasing its current market capitalization to $233.9 billion. Currently the market capitalization of Citigroup is $238.9 billion. Both financial institutions have grown their respective asset bases through multiple acquisitions. Citigroup under Sanford Weil’s leadership made more than 100 acquisitions and B of A rose to the No. 2 spot by spending more than $90 billion on acquisitions, including $48 billion for the acquisition of FleetBoston Financial. |
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CLP, UAEL and CLFA To Develop First Ever Comprehensive Canadian Professional Lease Training Program |
| The Canadian Finance and Leasing Association (CFLA) and the U.S.
based CLP Foundation (CLP) announce an agreement that will provide the
framework for a future Canadian equipment and automotive lease
professional certification program. The CFLA also announces an agreement
with the United Association of Equipment Leasing (UAEL) that will
establish a comprehensive professional training program for the Canadian
leasing industry. CFLA has asked Hugh Swandel of Swandel and Associates of Winnipeg, Manitoba, to lead the development of the curriculum and structure of the program. They will adapt the UAEL training materials and the CLP Foundation program for the Canadian market, expanding the education program to include vehicle leasing as well. "We are confident that with the expertise of Swandel and Associates, the CLP Foundation and the UAEL, Canada's first-ever comprehensive training for lessors will be a success," said CFLA President and CEO, David Powell. "Building from the program, our next step will be looking at how to implement the Certification Program and the CLP designation as part of the Canadian leasing industry." "The CLP Foundation looks forward to working closely with the CFLA, Swandel and Associates and the UAEL to establish the CLP designation as a recognized credential throughout the Canadian leasing industry" said CLP Executive Director, Cynthia Spurdle. "The CFLA, CLP and UAEL are committed to promoting the highest standards of knowledge and professionalism in the North American leasing industry," said Joe Woodley, UAEL's Executive Director, in La Quinta California. The CLP Foundation is the official governing body for the Certified Lease Professional ("CLP") Program. This designation identifies and recognizes individuals within the leasing industry who have demonstrated their competency through continued education, testing and conduct. We invite you to visit our web site - www.clpfoundation.org for detailed information about the CLP Program. UAEL, established in 1975, is a trade association serving a diverse membership base in the equipment financing industry. Our mission is to provide a forum for the personal and professional growth and mutual success of our members by uniting them through networking, education and involvement. For more information about UAEL please visit www.uael.org. The CFLA represents the asset-based financing, equipment and vehicle leasing industry in Canada. With over C$103 billion of financing in place with Canadian businesses and consumers, this industry is the largest provider of debt financing in Canada after the traditional lenders (banks and credit unions). For more on CFLA: www.canadianleasing.ca |
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Equipment Leasing Program Offered in Canada by Beacon Funding |
| Beacon Funding, a leading provider of equipment leasing throughout
the United States, has expanded their services into a Canadian equipment
leasing program. Beacon Funding, an equipment leasing provider for a wide variety of specialized equipment needs throughout the United States, has launched a similar equipment leasing program in Canada. This equipment leasing program offers several different kinds of leases, making it possible for all types of small businesses in Canada to get the equipment they need without draining their working capital resources. "We plan to support Canadian sales with familiar resources like online technology, customized marketing literature, equipment expertise, competitive pricing, and incentive programs," said John Vonder, Vice President of Business Development at Beacon Funding. Beacon Funding will offer several equipment leasing programs in Canada, including: • * Deferred Payment plan, which defers the
first payment for a few months to help the client get up and running
with their new equipment. |
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Hitachi Capital buys specialist commercial vehicle fleet From GE Capital TLS |
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Hitachi Capital (UK) PLC, the financial
services group, said its vehicle leasing & fleet management division,
Hitachi Capital Vehicle Solutions, has acquired a fleet of specialist
commercial vehicles from GE Capital TLS Ltd, for 5.5 million ($10.3
million ) in cash. The fleet consists of 255 units including tractors, refuse and welfare vehicles. Hitachi said the fleet will integrate seamlessly with the company's existing specialist commercial vehicle operation built up within the vehicle solutions division. |
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Latin America Experiencing Equipment Leasing Boom |
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Report Shows Region's Volume Up 50 Percent
in 2005, With Brazil's Nearly Doubling, Argentina's Recovering Equipment
leasing volume in Latin American countries increased by more than 50
percent on average in 2005, according to a report by The Alta Group
Latin American Region (LAR). The Alta LAR 100 report, which includes the
firm's second annual ranking of the Top 100 leasing companies in Latin
America, has expanded with new information revealing the region's
fastest-growing businesses, key multinationals, and growth in each
country.
"Our most interesting finding is the impressive growth in leasing throughout Latin America in 2005," said Rafael Castillo-Triana, principal for The Alta Group LAR. The firm provides consulting, legal and research services to manufacturers, banks, leasing companies, associations and organizations working in Latin America. "Brazil, which has the largest leasing industry in the region, experienced tremendous growth and almost doubled in size," he added. "The report also shows that Argentina's leasing industry is recovering from the downturn following the country's economic crisis of 2002." Alta believes equipment leasing has grown in Latin America because it has proven to be an effective tool to funnel capital investment into emerging economies, and because the prevailing macroeconomic conditions in Latin America have favored the increasing demand of capital investment, Castillo- Triana noted. "However, the industry still needs to be prepared to be sustainable and continue growing, even in periods of macroeconomic downturns. Alta's sense is that most of the large players are intending to do so, but this requires a lot of adjustments and a willingness to abide by best management practices for the leasing industry," he said. The report's ranking of the Top 100 leasing operations in Latin America is based on each company's reported portfolio of leased assets in 2005. Alta LAR developed the rankings from data published by the corresponding country leasing associations, Central Banks of regulatory entities, rating agencies and in some cases from data provided by individual companies. The 10 leading companies in the Alta LAR
100 this year are, in order: The complete Alta LAR 100 report is available free of charge, in both English and Spanish. For a copy, please visit http://www.thealtagroup.com. The Alta Group LAR also plans to offer an in-depth database to accompany the report, for a fee, Castillo-Triana said. |
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Oakmont Acquisition Corp. to Acquire Assets of One Source Equipment Rentals, LLC |
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Oakmont Acquisition Corp. has announced
earlier this week that it has entered into a definitive agreement to
acquire substantially all of the operating assets of One Source
Equipment Rentals, LLC together with its related entities, including One
Source Equipment Rentals of Lafayette, LLC, One Source Equipment Rentals
of Dayton, LLC, One Source Equipment Rentals of Morton, LLC, One Source
Equipment Rentals of Decatur, LLC, and One Source Equipment Rentals of
Granite City, LLC, (collectively "One Source" or the "Sellers"). One
Source is a leading provider of industrial and general construction
equipment rental and associated services throughout the Midwest. The
company focuses on the industrial and general construction market,
utilizing a full service business model, offering rentals, sales,
long-term leases, repairs and maintenance, transportation, and
inspections. One Source carries industry-leading brands such as Terex,
JLG, Ingersoll-Rand, Caterpillar, Genie and Bobcat. Available product
classes include high-reach equipment, backhoes, scaffolding, pumps,
cranes, forklifts and consumables. Terms of the sale , which may be subject to post-closing working capital adjustments, totaled approximately $41 million. This included $16 million in cash to be paid to the Sellers and a subordinated promissory note for approximately $1.2 million. The Sellers may elect to take a portion of the cash consideration in common stock of Oakmont. The remaining portion of the consideration is composed of Oakmont's assumption of approximately $24 million of One Source indebtedness. Management of the acquired companies will remain essentially unchanged following the acquisition. The acquisition is subject to customary closing conditions. In addition, the closing is conditioned on the holders of less than 20% of the shares of common stock of Oakmont issued in its initial public offering voting against the transaction and electing to convert their shares into cash, all in accordance with Oakmont's certificate of incorporation. The transaction is anticipated to close during the fall of 2006. |
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Trinity Industries, Inc. Signs Definitive Agreement to Sell European Rail Business |
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Trinity Industries, Inc., has announced it
has signed a definitive agreement to sell the Company's European Rail
business. The business is being sold to International Railway Systems
S.A. Trinity anticipates closing the transaction within 14 days. "We are pleased to announce this transaction," commented Timothy R. Wallace, Trinity's Chairman, President and CEO. "While the European railcar market has shown signs of recovery in recent months, we feel it is in the best interest of Trinity to dedicate more of our resources and assets to opportunities in North America. We are pleased with the growth of our North American operations and continue to focus on margin improvement of those businesses." The terms of the transaction were not disclosed, and financial impact of the transaction will be recorded in the Company's third quarter ending September 30, 2006. The Company does not expect a material financial impact to be recorded as a result of the transaction. |
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| Airlines/Aircraft Orders and News |
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Boeing sees doubling of the world freighter fleet |
| Boeing released an update of its Current Market Outlook, for
2006.Co. In this report it said it expects global demand for cargo
services to increase significantly over the next 20 years, which could
result in a doubling of the world freighter fleet to more than 3,500
airplanes. Boeing projects additions and replacements could result in approximately 3,000 new aircraft being added to the freighter fleet by 2025 as planes are retired from service. |
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GAMA Reports Upturn in General Aviation Airplane Shipments |
| The General Aviation Manufacturers Association (GAMA) recently
announced record-breaking shipment and billing figures, for the first
half of ’06. According to the figures they released, shipments of
general aviation airplanes for the first six months of ’06 totaled 1,843
units, a 19.1% increase over the same period last year. Additionally,
industry billings increased 34.9% to $8.8 billion. Equally significant, the overall upward trend in industry shipments was evident in all aircraft segments. Shipments of piston-powered airplanes in the first 6 months of 2006 were up 17.4% from the same period last year to 1,270 units. Turboprop shipments rose 12.1%, from 141 units in 2005 to 158 units in 2006. The healthiest increase occurred in the business jet market with a 27.7% increase in shipments from 325 units to 415 units. |
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| Economic News |
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Credit Manager's Index for July: Good News in All Sectors |
| “The seasonally adjusted Combined Credit Manager's Index (CMI) for
July was virtually all good news," comments Dan North, Chief Economist
with credit insurer Euler Hermes ACI. "All three of the major indices
were up on both a month-to-month and a year-over-year basis. In
addition, all three major indices stand well above the 50 mark
indicating economic expansion. And, out of the 30 total components, only
two are below 50," he summed. "There were few dramatic swings in the
indices this month except for the 4.6% increase in the favorable
components of the manufacturing sector. The survey once again describes
an economy that has had enough strength and momentum to overcome the
obstacles of a tightening Fed, inflation fears, high energy prices, a
weak stock market and a wobbly consumer." The manufacturing sector index for July rose 0.9% on a seasonally adjusted basis. The rise was driven mostly by an increase of 5.8% in the sales component and an increase of 9.6% in the amount of credit extended. "Both of these top-line oriented indices bode well for future growth," said North. The July service sector index rose only 0.1% on a seasonally adjusted basis. North comments, "There were no particularly notable movements that would suggest a significant shift or pattern, but six of the 10 components rose." "On a year-over-year basis, the combined CMI rose 1.3%, while the manufacturing sector rose 0.8% and the services sector rose 1.8%," said North. "Eight out of 10 components for the combined CMI rose, while seven of 10 rose in both the manufacturing and services sectors. Overall, the indices reflect the strong economy of the past several quarters." The CMI, a monthly survey of the business economy from the standpoint of commercial credit and collections, was launched in January 2003 to provide financial analysts with another strong economic indicator. The CMI survey asks credit managers to rate favorable and unfavorable factors in their monthly business cycle. Favorable factors include sales, new credit applications, dollar collections and amount of credit extended. Unfavorable factors include rejections of credit applications, accounts placed for collections, dollar amounts of receivables beyond terms and filings for bankruptcies. A complete index including results from the manufacturing and service sectors, along with the methodology, is attached. A complete view of the index can be viewed online at http://www.nacm.org/resource/press_release/CMI_current.shtml. |
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ISM: Manufacturing Sector Expands in July |
| Economic activity in the manufacturing sector grew in July for the
38th consecutive month, while the overall economy grew for the 57th
consecutive month, according to the latest Manufacturing Report On
Business from the Institute for Supply Management. "Manufacturing growth accelerated in July driven by an upswing in production following June's increase in new orders,” said Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. “Employment expanded after a one-month decline, while inventories grew after two months of contraction. The overall message is that manufacturing is proving to be quite resilient in the face of higher interest rates and weakening consumer spending. Strong demand continues to put upward price pressure on primary metals including copper and nickel." The 12 industries reporting growth in July — listed in order — are: Primary Metals; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Chemical Products; Furniture & Related Products; Miscellaneous Manufacturing; Petroleum & Coal Products; Computer & Electronic Products; Paper Products; Plastics & Rubber Products; Nonmetallic Mineral Products; and Machinery. The performance of manufacturing index (PMI) indicates that the manufacturing economy grew in July for the 38th consecutive month as it registered 54.7%, an increase of 0.9 percentage point when compared to June's reading of 53.8%. A reading above 50%indicates that the manufacturing economy is generally expanding; below 50%indicates that it is generally contracting. The July PMI indicates that both the overall economy and the manufacturing sector are growing. ISM's New Orders Index registered 56.1% in July. The index is 1.8 percentage points lower than the 57.9% registered in June. July is the 39th consecutive month the index has exceeded 50%. ISM's Production Index registered 57.6% in July, 2.5 percentage points higher than the 55.1% reported in June. July is the 39th consecutive month of growth in the index. ISM's Backlog of Orders Index registered 50.5%, indicating manufacturers' backlogs in July are expanding at a slower rate when compared to June. The index is 3.5 percentage points lower than the 54% reported in June. Of the 88% of respondents who report their backlog of orders, 19% reported greater backlogs, 18% reported smaller backlogs, and 63% reported no change from June. |
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NONRESIDENTIAL CONSTRUCTION SPENDING ACCELERATED IN JUNE, AGC ECONOMIST SAYS |
| "Construction spending rebounded in June after a tiny drop in May
and a small increase in April," Ken Simonson, Chief Economist for The
Associated General Contractors of America (AGC), reported recently.
Simonson was commenting on an August 1 report from the Census Bureau
that showed the value of construction put in place rose at a seasonally
adjusted annual rate of 0.3 percent in June, following a drop of less
than 0.1 percent in May, and a gain of 0.2 percent in April. "In all three months, private residential construction dropped sharply--1.0 percent in June--while private nonresidential and public construction spending increased," Simonson observed. "In June, these categories rose 2.7 and 0.8 percent respectively. I expect those trends to continue: falling residential spending, very strong private nonresidential and somewhat positive public spending. The 'top line' number will depend on which sector has the biggest change each month. "There are many areas of strength on the private nonresidential side," Simonson added. "For instance, manufacturing spending surged 8 percent for the month and 24 percent in the first half of 2006 compared to January-June 2005. Multi-retail, which includes shopping centers, malls and stand-alone general merchandise stores like 'big-box' retailers, added 1.1 percent in June and 52 percent year-to-date. Lodging--hotels and resorts--jumped 8.7 percent for the month and 39 percent year-to-date. Transportation facilities were up 1.0 percent for the month and 28 percent year-to-date. Power plants had a 4.1 percent spurt in June and 13 percent in the first half. And hospital construction continued to soar, up 1.7 percent for the month and 29 percent for the first half. "Nearly offsetting these gains, new private single-family construction tumbled 2.1 percent in June," Simonson noted. "New private multi-family construction was up 0.1 percent, which probably reflects a rise in rental construction balancing out a drop in condo projects. The volatile and hard-to-measure 'improvements' category, covering renovations and additions, climbed 1.6 percent for the month but is down 7 percent year-to-date. "I expect to see more of the same for the rest of the year," Simonson predicted. "As builders work through current backlogs of sold but not-yet-built houses, they will curb new construction sharply. Condo work may tail off even more steeply but rental projects will take up some of the slack. On the private nonresidential side, manufacturing, freight and passenger transportation, oil, gas, and alternative energy projects, lodging, and hospital markets should all keep contractors busy. Retail and office construction will be more spotty, depending on local market conditions. Public construction should be helped initially by higher state budgets in the fiscal year that began in July for most states, but higher materials costs will limit the number of contracts that state and local governments can award." |
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PricewaterhouseCoopers Survey Finds U.S. Manufacturers Are Gearing Up For Growth |
| U.S. industrial manufacturers are gearing up for growth, projecting
an average revenue increase of 8.1 percent for the next 12 months, according to PricewaterhouseCoopers' most recent Manufacturing Barometer. Executives surveyed also expressed continued worries about energy prices, and 61 percent noted they were either already sourcing from low-cost countries or seriously considering doing so. Industrial manufacturers' predicted growth rate of 8.1 percent is higher than last quarter's projection of 7.8 percent -- and significantly above the 6.5 percent forecasted a year ago. On another positive note, only 13 percent of respondents cited decreasing profitability as a potential barrier to growth, down from 22 percent last quarter. Energy prices are the driving force behind rising costs, with 65 percent of executives viewing them as a barrier to growth. This represents a slight increase over the 63 percent who named higher energy costs as a barrier to growth last quarter; however, it is far fewer than the 80 percent who saw it as a concern last year. The Manufacturing Barometer also found that 61 percent of manufacturers are either using or considering using low-cost sourcing from abroad to reduce supply chain and sourcing expenses. Those who are either using or considering low-cost sourcing tended to be larger companies, with enterprise revenues averaging $7 billion (versus $4.3 billion for those not using or considering low-cost sourcing). Additionally, users or those considering low-cost sourcing expected slower revenue growth over the next year -- 7.7 percent. Companies not using or considering low-cost sourcing projected revenue growth of 10.4 percent. Users or those considering low-cost sourcing appear to have less price flexibility and expect a greater share of their total revenues to come from sales abroad. "Competition is tight across the globe," said Milo. "Industrial manufacturers looking to control rising costs often need to rely on low-cost country sourcing in order to maximize international supply chain efficiency." China was the leading country cited for low-cost sourcing, with 82 percent of those using or considering low-cost sourcing likely to set up operations here. Following China were India (50 percent), Mexico (42 percent) and Eastern Europe (32 percent). China and India lead the way as likely destinations (both with 16 percent) among companies seriously considering low-cost sourcing overseas in the near future. Industrial manufacturing executives expressed optimism about the global and domestic economies, with 63 percent reporting optimism about the U.S. economy, and 64 percent about the global economy. PricewaterhouseCoopers' "Manufacturing Barometer" is developed and compiled with assistance from the opinion and economic research firm of BSI Global Research, Inc. For more information about Barometer surveys, including recent economic trend data and topical issues, please visit the following web site: www.barometersurveys.com. |
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People in the News
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Bank of America adds 3 to London ABS team |
| Bank of America has announced the addition of three people for its
asset-backed securities (ABS) team in London. They are: Adam MacDonald has joined as head of corporate securitisation from UBS , Paul Wilde has joined as the head of UK financial institutions group origination, from Egg Bank, where he was the head of corporate treasury, and Barry Hunter has joined as ABS structurer from Amethyst Corporate Finance. |
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CapitalStream Appoints Celeste Hauck to Vice President, Professional Services |
| CapitalStream Inc., a leader in front office automation solutions
for commercial lending and finance operations, has announced the
appointment of Celeste Hauck to vice president, professional services.
Hauck has built and managed large client service teams who have
successfully implemented large-scale enterprise systems across a broad
range of enterprises including large banks and financial institutions.
She will focus on building the processes and personnel skills that
ensure CapitalStream's level of service delivery to complement the
company's overall growth plans.
Hauck spent the last 16 years with Ceridian, a $2 billion enterprise software and services company, in numerous roles including regional vice president of implementation services, general manager and district vice president of client services. Most recently she spearheaded Ceridian's largest Six Sigma project, which defined new implementation methodologies and led to improved implementation cycle time, accelerated revenue recognition, improved customer satisfaction and significant cost savings. |
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CIT Appoints Deirdre A. Martini as Senior Restructuring Advisor and Managing Director |
| CIT Group Inc. announced the appointment of Deirdre A. Martini,
former United States Trustee for the Southern District of New York, as
senior restructuring advisor and managing director in CIT's Business
Capital Group. In her new position, Martini will assist the CIT business
unit that provides financing solutions and advisory services for
distressed companies in connection with both pre-bankruptcy workouts and
post-petition debtor-in-possession and exit financings. She will also
advise other CIT business units on all aspects of restructuring and
advisory opportunities for troubled companies. Prior to CIT, from October 2003 to April 2006, Martini served as a United States Trustee and oversaw the administration of the largest and most complex chapter 11 restructurings filed in recent history in the Southern District of New York. Among the cases commenced during her tenure were Delphi Corporation, Delta Airlines, Dana Corporation, Northwest Airlines and Refco Inc. Before her appointment by the United States Attorney General as a United States Trustee, Martini chaired the restructuring practice at Ivey, Barnum & O'Mara, LLC. Prior to this, from 1988 to 1999, she was as an Assistant United States Attorney for the District of Connecticut, representing federal agencies in the bankruptcy court and prosecuting bankruptcy crimes. Martini was recently recognized by the International Women's Insolvency and Restructuring Confederation as their 2006 Woman of the Year. She is an Adjunct Professor of Law at St. John's University School of Law and is an active member of the American Bankruptcy Institute and the International Women's Insolvency and Restructuring Confederation. She serves on several Strategic Planning Committees for United States Bankruptcy Courts for the Southern District of New York and the District of Connecticut where she has also served on the Local Rules Committees for those jurisdictions. |
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Costabile Joins OFC as SVP, Group Head of Special Markets Unit |
| OFC Capital announced that Fred Costabile has joined the company as
senior vice president and group head for their Special Markets Unit. He will work out of OFC Capital's headquarters in Roswell, Ga. In his previous positions, Costabile has served as a wholesale buyer for Wells Fargo, principal and national sales manager/chief marketing officer for Bank of America Vendor Finance as well as senior vice president and manager of Special Markets for NationsBank Leasing Corporation. In addition, he was a trustee for The Equipment Leasing and Finance Foundation in 2001, a member of the Board of Directors and the Executive, Finance and Southeast Regional committees for the Equipment Leasing Association. Costabile is also a member of the Associated Equipment Distributors. In 2006, OFC Capital (formerly Alfa Financial Corporation) was purchased by OFC Servicing Corporation, a wholly owned subsidiary of MidCountry Financial |
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First Fleet Corporation Promotes Patrick Devine To Vice President, Finance |
| First Fleet Corporation, a national provider of asset management,
financial services and high technology operational support to the
nation's private truck fleets, announced the promotion of Patrick
Devine, CPA, to vice president, finance. In his new position, Devine will be actively involved in the implementation of new business strategies and developing diversified funding strategies for PHH FirstFleet, the recently formed truck group that combines the resources of PHH Arval and First Fleet Corporation. He will also be responsible for administration of the finance department. Prior to joining the company in 2003 as corporate controller, Devine served as assistant controller of Interval International in Miami. Before that, he was at Carnival Corporation, where he was senior audit associate. He began career as an auditor at Coopers & Lybrand [now PriceWaterhouse-Coopers]. He is a graduate of Loyola Marymount University where he received a B.S. in accounting and is a certified public accountant. |
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FREDERICK VAN ETTEN NAMED NEW PRESIDENT OF POPULAR LEASING U.S.A. |
| Popular Leasing U.S.A. (PLUSA), a subsidiary of Banco Popular North
America (BPNA), one of the nation’s premier community banks and a
leading small business lender, today announced the new appointment of
Frederick M. Van Etten as President of Popular Leasing U.S.A. upon the
retirement of Bruce Horton. The appointment was effective August 1,
2006. “On behalf of all of our employees, customers and partners, we want to express our gratitude and acknowledge Bruce’s tremendous dedication and efforts during his tenure at Popular Leasing U.S.A.,” said Roberto R. Herencia, President, Banco Popular North America. “Bruce’s leadership supported growth and guided change in order to position the company for even more success. We are excited about Fred’s appointment, as we tap into his expertise and continue to capture momentum in the small ticket, vendor-oriented leasing marketplace.” Building on that foundation and momentum, Fred Van Etten will continue to ensure the organization is focused on and aligned with businesses in the small ticket commercial and medical area; as well as the municipal and federal leasing business. Prior to joining PLUSA mid-year in 2005, Mr. Van Etten was the President and CEO of SilverMark Capital, the leasing division of Sterling Bank in Houston, Texas for three years. Mr. Van Etten has held a number of executive leadership positions serving as Executive Vice President for the Redstone Financial Companies and as co-founder and Executive Vice President of First Sierra Financial. |
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GMAC Names Freer VP to Canadian Structured Finance Division |
| GMAC Commercial Finance has announced the appointment of Kevin Freer
as vice president/business development officer of the company's
Structured Finance Division. In his new role, Freer is responsible for
the sourcing and structuring of leveraged finance opportunities
throughout Ontario, Canada. Prior to joining GMAC, Freer’s experience included nine years assuming roles of increasing responsibility in both retail and commercial lending. He later led the finance department of a multinational manufacturing company, and also a number of years as an investment banker with a Toronto boutique firm. |
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JOHN L. DALE APPOINTED COO OF FIRSTLEASE |
| John L. Dale has been named Chief Operating Officer of FirstLease,
Inc., a small ticketleasing company and wholly owned subsidiary of
Firstrust Bank.
In his new position, Dale will oversee the retail and wholesale operations of FirstLease. He will not only manage the retail vendor program but also spearhead the company’s fast-growing portfolio purchase activities and the new warehouse participation division. Prior to joining FirstLease, Dale served as Executive Vice President and Chief Financial Officer for Partners Equity Capital Company, LLC in Horsham, Pa. A veteran in his field, Dale has more than 15 years of experience working with companies that provide asset securitization, portfolio purchasing and warehouse lines. Dale earned his master’s degree in management from the University of Maryland, and his bachelor’s degree in finance and economics from The Pennsylvania State University. He was awarded the Chartered Financial Analyst (CFA) designation in 2005. |
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National City Commercial Capital Names Rossi to Large Ticket Unit |
| National City Commercial Capital, a wholly owned subsidiary of
National City Bank, announced that John A. Rossi has joined the
company's Large Corporate Finance unit. In his new role, Rossi will be focused on new business development, calling directly on businesses with annual revenues in excess of $250 Million. Rossi has over 20 years of experience in the "large ticket" equipment finance industry, focused primarily on direct lease origination and sales management throughout the Midwest region. |
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Seabury Group Expands Airline Investment Banking/Consulting Staff |
| Seabury Group recently announced that it has promoted one of its
European-based senior executives to the position of Executive Director
and added four other executives with aviation industry experience to the
firm. • Martin J. Wills, based in Seabury’s European headquarters in Amsterdam, The Netherlands, office with marketing responsibilities for Europe and the Middle East, has been promoted to Executive Director. Mr. Wills has more than 20 years of experience in sales, marketing, and financial and risk management and also served as Senior Vice President of debis AirFinance (now AerCap B.V.) before joining Seabury in 2004. • Andy Phillips joined the firm as Senior Vice President, Technical Services. He previously served as a consultant to BAE Systems’ Asset Management in association with Bayerische Landesbank in Munich and has more than 25 years experience in aviation technical services. • Max Reilly, based in Seabury Airline Planning Group’s Bangkok office, joined the firm as Vice President with responsibility for executing consulting assignments principally for Europe-based airlines. He previously was with the Star Alliance and has extensive experience in network planning and alliance revenue analysis. • Ross McKenzie has rejoined the firm as Vice President with responsibility for client business plan development. Mr. McKenzie was a Vice President with SkyWorks Capital, and later, Senior Director, Finance, with Independence Air. Mr. McKenzie has eight years of experience in airline financial planning and analysis. Thompson S. Young has joined Seabury’s Investment Banking Division as Vice President. Mr. Young has over six years of investment banking experience covering capital-intensive industries, including natural resources, power and transportation. He began his banking career in the New York office of Banc of America Securities, followed by posts with Taurus F.C. and SkyWorks Capital. |
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Steve Bridgland to join DVB Bank’s Deucalion Fund |
| DVB Bank AG, the Frankfurt-based bank, which specialises in
transport finance, announced that Steve Bridgland will join DVB in New
York as a Senior Vice President. Steve will work alongside recently
appointed Stephan Sayre, the new head of the Deucalion Fund. The Deucalion Funds invest equity in aircraft assets, airlines and aviation related interests and take participations in high yielding loans/bonds/asset backed securities and mezzanine financings. Deucalion is structured as an investment company with a team of advisors analysing opportunities in the aviation industry and managing investments made on its behalf. Deucalion is an integral part of the DVB Aviation business model and complements its advisory, arranging and lending businesses. The funds play an important role in supporting DVB´s airline clients through the provision of equity solutions in their aircraft acquisition and divestment strategies. Steve joins DVB from RBC Capital Markets in New York where he held the post of Director, Global Structured Finance, Transportation. With over fifteen years of experience in innovative asset financing, infrastructure finance and public private partnerships, at RBC he was primarily responsible for the development of aviation business in the High Yield Sales & Trading group. Prior to joining RBC Capital Markets in 2000, he was an Associate Director in the Global Transportation Group at Greenwich NatWest and specifically responsible for the development of the firm’s global investment banking business to that sector. He has been responsible for and involved in a very diverse range of equity, debt capital markets, advisory, asset backed and project, acquisition and structured financing assignments throughout the world |
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| Words of Wisdom |
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“The world will not end today-it’s already tomorrow in Australia” (Found
on a sign in front of a church in Buffalo, NY) I ain’t as good as I once was, but once I’m as good as I ever was.” (Song recorded by C&W singer Toby Keith). |
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IN VINO VERITAS |
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| Canada’s Niagara-on-the Lake: The enjoyment of regional wines-next week’s edition. |
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UPCOMING WINE FESTIVALS |
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There are numerous wine festivals/auctions coming up that lend themselves to a great deal of fund and enjoyment. They include: Northport, Mich. Red, White and the Blues Festival; Aug. 12; 231-271-9895; www.michiganwines.com Overland Park, Kan. Kansas City Festival of Wines; Aug. 26-27; 913-652-1907; www.kcwinefest.com Red Hook, NY Hudson Valley Wine Fest; Sept. 9-10; 845-658-7181; www.hudsonvalleywinefest.com San Antonio, TX. New World Wine & Food Festival; Nov. 7-12; 210-223-2881; www.nwwff.org |
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