Westar Financial Signs Preliminary Agreement for $10 Million Investment
11 August 1997
Westar Financial Signs Preliminary Agreement for $10 Million Investment
OLYMPIA, Wash., Aug. 11 -- Westar Financial Services
Incorporated (OTC: WEST), a finance company focused solely on the prime-credit
sector of the automobile leasing market, announced it has signed an agreement
in principal with a major New York-based diversified financial services
company for an investment of $10 million in subordinated debt and a
substantial equity participation. Further details will be provided when the
agreement is finalized, which is expected this fall.
"Proceeds will be used primarily for geographic expansion," noted Robert
W. Christensen Jr., Chairman and Chief Executive Officer. "This infusion of
capital provides a springboard for leveraging the success Westar has achieved
in winning a 42% dealer penetration level in the Pacific Northwest. Our
strategy is to generate approximately $100 million in annual lease
acquisitions through each of a series of regional hubs.
"One of the world's largest investment firms, our new partner provides
ready access to the broader financial community. It is a wonderful fourth
addition to our already-formed strategic alliances with other top-tier finance
and insurance firms," Christensen said. "Solid partnerships with the finest
firms in their fields are a core element of Westar's long-term strategy."
Westar has close relationships with: Banc One, which provides a $25 million
credit facility; The Industrial Bank of Japan, which acts as the structuring
agent for Westar's lease securitization packages; and MBIA Insurance, which
insures the soundness of the securitizations.
"Our total focus is on the prime-credit sector of the auto lease finance
market. During the past year, Westar has received national recognition as we
completed our first two securitizations, greatly expanded our dealer network,
and produced strong revenue growth. We have achieved or surpassed our major
early goals in terms of initial results, market penetration, and dealer
acceptance of our products and services," he added.
Westar Financial Services Incorporated is a fast-growing, Washington-based
automobile finance company focused solely on the prime-credit segment of the
$100-billion auto-lease finance market. Full-scale activities through its
innovative Dealer-Direct Retail Leasing(TM) (DDRL) program began in October
1995 to selected, high-quality automobile dealers in the Pacific Northwest.
Westar's shares are traded over-the-counter by Hoefer & Arnett, San Francisco,
and Hill Thompson, Jersey City.
Statement regarding "Forward Looking Statements": Statements concerning
future performance, developments or events, including potential profitability,
expansion plans, securitization plans, various statements concerning
expectations for growth and market forecasts for the Company's products and
for its industry, the ability of the Company to control costs and expenses,
adequacy of working capital, and any other guidance on future periods,
constitute forward-looking statements which are subject to a number of risks
and uncertainties, including the ability to successfully enter new markets and
complete future financings, which might cause actual results to differ
materially from stated expectations.
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SOURCE Westar Financial Services Incorporated