Optimus News
Freeze on Capital Expenditures Coinciding with Expiring Equipment Leases
Lead to Expensive Lease Extensions.
September 1st, 2009 — Mission Viejo, CA
The tough economy is creating some difficult decisions for companies with expiring equipment leases. According to the Equipment Leasing and Finance Association, “new business volume for July 2009 declined by 35.1 percent when compared to the same period in 2008. Month-to-month new business volume actually decreased 7.7 percent from June to July, from $5.2 billion to $4.8 billion.”
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The Optimus Group terminates $5.5 million equipment lease facility for Healthcare Provider.
March 9th, 2009 — Mission Viejo, CA
The Optimus Group is pleased to announce the successful termination of a $5.5 million equipment lease facility for a $1 billion healthcare provider. The lease facility was intended to be for a variety of new healthcare technology.
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The Optimus Group completes $9 Million lease facility for $3 Billion mining concern.
February 12th, 2009 — Mission Viejo, CA
The Optimus Group is pleased to announce the successful funding of a $9 million lease for a $3 billion international mining concern. The leased equipment was comprised of a variety of new construction equipment.
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Costs of Terminating Leases can be Significant if Not Negotiated Properly.
October 28th, 2008 — Mission Viejo, CA
When the economy struggles and orders dry up, corporate borrowers typically terminate leases for equipment that might sit idle during the slump. According to a recent Equipment Finance Leasing Association survey, over 20% of revenue from respondents came from non rent fees including termination costs.
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Effects of Credit Crisis Not Equal Across All Borrowers
October 20th, 2008 — Mission Viejo, CA
While the unprecedented credit crisis has impacted many corporate borrowers, those companies with solid balance sheets and credit ratings of BB- or above can still benefit from seasonal 4th Quarter pricing and special accounting incentives such as Bonus Depreciation which is set to expire on December 31st of this year.
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Emergency Fed Rate Cut Creates Re-Finance Opportunity For Corporate Borrowers
January 23, 2008 — Mission Viejo, CA
The Emergency Federal Reserve Rate Cut announced earlier this week has created the best opportunity to re-finance corporate obligations such as equipment leases since the first quarter of 2004. On Tuesday, the 5-year Treasuries dropped 30 basis points alone. Three year SWAP rates, which are typically used to determine lease rates, have dropped almost 200 basis points since their 2Q07 peak, providing corporate borrowers with an immediate window of opportunity to move into lower rate structures.
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