Resource America, Inc. Closes on New Debt Facilities for Its Managed Equipment Leasing Funds 6/2/2008
PHILADELPHIA, PA. – June 2, 2008 – Resource America, Inc, (NASDAQ: REXI) announced today that its subsidiary, LEAF Financial Corporation ("LEAF") has closed on a new debt facility for LEAF Equipment Leasing Income Fund III, L.P. (“LEAF III”) and extended an existing facility for LEAF Equipment Leasing Income Fund II, L.P (“LEAF II”).
LEAF III has entered into a $130 million credit facility with Key Equipment Finance Inc.’s lease advisory services business which will initially be allocated to provide permanent financing for the portfolio resulting from LEAF’s fourth quarter acquisition of Dolphin Capital, repaying the temporary bridge financing.
“We are very excited by this new relationship with Key Equipment Finance,” comments Crit DeMent, CEO of LEAF. “Their team of professionals is tremendously focused on our industry and should deliver a high level of long term support to our investor partners.”
Crit DeMent, Chairman and Chief Executive Officer of LEAF, commented that “we have continued to build our business and search out quality assets in this tremendously inefficient marketplace. Not only does this enhance our origination capabilities, but our investment limited partners will benefit from the quality of assets generated through this acquisition. We believe that over the last year we have become one of the largest independent commercial finance players focused on the small and middle ticket equipment leasing business because of our unique ability to take advantage of opportunities such as this.”
LEAF II extended the term of its $150 million debt facility with WestLB NA providing credit availability well into LEAF II’s reinvestment period. “WestLB has been a lender to each of the LEAF Funds and we appreciate their ongoing confidence and support” adds DeMent.
LEAF is a commercial finance and equipment leasing company with approximately $1.7 billion in assets under management as of March 31, 2008. LEAF’s business model is to originate small to middle ticket equipment leases and loans in a variety of asset classes through five strategic business units. After origination, LEAF manages the leases for its own account, institutions, and individual investors through investment partnerships and other investment vehicles. LEAF currently has three active funds; LEAF I, LEAF II, and LEAF III which have raised approximately $17.1 million, $60.0 million and $120.0 million respectively in gross offering proceeds.
Key Equipment Finance, through its lease advisory services unit, specializes in the securitization of equipment leases, loans and other term obligations from corporate clients. For more information please visit the Lease Advisory Services section of our web site at www.kefonline.com.
Resource America is a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the financial fund management, real estate and commercial finance sectors. For more information please visit our website at www.resourceamerica.com or contact Investor Relations at pschreiber@resourceamerica.com.
Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Resource America, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in the Company's reports filed with the SEC, including quarterly reports on Form 10Q, reports on Form 8-K and annual reports on Form 10-K.return to the news
Contact: Pamela Schreiber, Investor Relations, Resource America, Inc., 215-546-5005
