Entering text into the input field will update the search result below

Resource America LEAF Commercial Credit Under Way

Jan. 24, 2011 12:25 PM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

LEAF Commercial Credit Under Way


As predicted by Leasing News, the new company by the founder of LEAF Financial is underway; moving to the 14th floor, 2005 Market Street, Philadelphia setting up a web site, and it appears this will be the concentration. Resource Real Estate at 1845 Walnut Street, is now moving to 2005 Market, 15th floor.

As highlighted in the story of the relationship with Guggenheim, the announcement stated, "Senior management contributed capital to LCC in the form of all the shares of common stock they owned in LEAF Financial." This perhaps is the four who joined Crit DeMent from Fidelity: Nick Caperrelli, Dave English, and Miles Herman.

If the collective 10% number from the SEC filings is correct, it appears management will have 10% of the new company and Guggenheim will end up with 5%.

Reading the press release, the new group will have access to a revolving line from Guggenheim for an initial $50 million, and then up to $200 million in additional tranches, provided certain conditions are met, including the parent putting in $10 million more for preferred stock. Most of the $36 million equity number appears to be soft asset/share value from Leaf Financial, including the $10 million future commitment to acquire additional preferred shares, only $5.2 million was in real cash.

Resource TRS, the Company’s directly-owned taxable REIT subsidiaries (TRS), holds all the Company’s direct financing leases and notes. It is interesting as Resource America Inc. has always shown operating losses, so where the free and clear assets are located is a question not explored.

According to the web site, leafnow.com, "At LEAF we provide vendors with financing products and services designed to do one thing...accelerate their sales."

"It's not simply offering vendors a financing program...It's actually helping them achieve their goals by integrating financing into their selling tactics."


LCC-LEAF Transfer Agreement:

Leasing News story:

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.