Mazuma Capital Corp Equipment Finance and Leasing » Press Release

Mazuma Capital Funds $7 Million for Global Precious Metals Miner

Michael Smith — Tue, 15 Dec 2009 07:17:53 +0000

Draper, Utah, December 14th—Mazuma Capital, a leading national direct lender, announced today it has funded $7 million for a global precious metals producer. Lease proceeds have been used for both above- and below-ground equipment.

The transaction contained characteristics representing multiple stumbling blocks for most lessors including: a US subsidiary of a foreign parent who would not act as guarantor; a partial sale-leaseback: a challenging industry; equipment exposed to catastrophic losses; off-balance sheet recordation; and a credit rating reflective of our recessionary economy.

Companies seeking financing in these circumstances must find lessors who can structure transactions yielding the desired liquidity and timeliness while mitigating the risk of loss. Progressive companies have come to trust in Mazuma Capital for this critical craft.

“We structured their transaction favorably and secured a competitive rate, but the factors that led to commencement of the transaction were personal. After meeting us and understanding the challenges, it confirmed their belief we were working within the constraints of the transaction and the economy to secure the most attractive deal possible,” said Matt Burrows executive vice president of sales for Mazuma Capital.

About Mazuma: Mazuma Capital is committed to our client’s success. Our unique capabilities and innovative product offerings provide solutions accelerating financial growth. Servicing both rising companies and established businesses, Mazuma continues to secure its position as the middle-market industry leader. We build long-term relationships by delivering on our commitments. Mazuma co-authored the Utah Best Practices Alliance and subscribes to the ELFA Code of Ethics.

Mazuma Capital Hires Richard Beynon as Chief Financial Officer

Michael Smith — Fri, 14 Aug 2009 08:29:52 +0000

Draper, Utah August 14th–Mazuma Capital, a leading national direct lender, announces today it has hired Richard Beynon as its chief financial officer. Beynon will have purview over all accounting operations including internal auditing, financial planning and analysis, treasury, financial reporting to external auditors and underwriters, human resources, tax analysis, and support due diligence initiatives.

Jared Belnap, Mazuma’s president and chief executive officer said, “We’ve searched exhaustively to find a CFO with the right blend of sophistication, real world application, experience and expertise. As we’ve honed our business patterns and practices we’ve been able to architect the ideal candidate profile and through an aggressive interviewing campaign, we systematically matched the right candidate to our set of prerequisites. We’re thrilled and fortunate to announce Richard Beynon as Mazuma’s new chief financial officer. He fits perfectly with the growth initiates, executive management, and corporate culture of Mazuma Capital Corp.”

Prior to joining Mazuma, Beynon was chief financial officer for hedge fund complex Outrigger Funds where he streamlined expenditures by optimizing monthly trade reconciliations and partnership accounting and coordinated annual financial and regulatory audits and compliance requirements.

Before his tenure at Outrigger Funds, as principal of his eponymously-named professional firm, Beynon successfully turned around a distressed company by restructuring its debt and properly positioned the company for a fruitful acquisition.

Beynon received a bachelor’s of science degree from the University of Utah and a master’s of business administration degree at Westminster College’s Gore School of Business where he was published in the school’s business journal.

Mazuma Capital Funds $5 Million to One of Country’s Largest Coal Companies

Michael Smith — Mon, 06 Jul 2009 14:00:55 +0000

Draper, Utah July 6th–Mazuma Capital, a leading national direct lender, announces today it has approved a $5 million transaction for a large Appalachian coal company. The NYSE-listed company has billions of tons of rich deposits and active mining complexes in numerous states.

The climate for financing commodity-base companies is solemn–prospects are even more uncertain for coal producing companies. Underground mining equipment makes some financing companies all the more reluctant. Price volatility of commodities over the past few years has made lending institutions indecisive on leasing commitments. Additionally, apprehension over legislative or regulatory changes represent a residual concern.

However, progressive underwriters know the standing of this energy staple to the United States. Clean coal technologies such as coal gasification and carbon sequestration represent an energy bonanza for America where experts estimate we may have a 300 year reserve of fuel.

“Our underwriters were able to take an objective view of the industry and the lessee without deviating from their core requirements. Where some hesitated because the collateralized equipment is deployed underground, our team saw a vibrant company with massive resources, excellent cash flow, and a track record of environmental sensitivity,” said Executive Vice President of Sales for Mazuma Capital, Matt Burrows.

Mazuma Completes $6.8 Million in Underground Mining Equipment

Michael Smith — Fri, 17 Apr 2009 21:23:52 +0000

Draper, Utah April 20th–Mazuma Capital, a leading middle-market national direct lender, announces today it has completed a $6.8 million lease facility for one of the oldest precious metals mining companies in the country. This low-cost production leader is highly successful in speculative exploration in the U.S. and internationally.

Lease proceeds will be used for underground mining equipment such as haul trucks, earthmovers, bulldozers, rough-terrain forklifts, etc. This type of underground mining equipment is challenging collateral for most underwriters as it is difficult to locate for inspection audits and is subject to aberrant mining events. The company’s chief financial officer praised Mazuma for overcoming these issues.

“This was a complex transaction. In addition to the geographically transient nature of the collateral, we needed to work with multiple subsidiaries and within an industry that experienced rapid contractions in market capitalization,” said Matt Burrows, Mazuma’s executive vice president of sales. “But our rigorous underwriting practices reveal key data giving us the confidence to know whether an industry has experienced an enduring change or mere market cyclicality.”

Mazuma Capital Closes $2.7 Million Lease for Market Research Company

Michael Smith — Thu, 02 Apr 2009 23:54:15 +0000

Draper, Utah, April 3rd–National direct lender Mazuma Capital has funded a $2.7 million lease transaction with a national market research firm. The company’s knowledge-base product is aggregated data from various methods and sources synthesized into actionable data for its diverse client base.

The financing was structured to meet the company’s nonconforming requirements. Approximately 15% of the financed project consisted of computer hardware while the balance was approved for soft costs including software development and acquisition of high-end ancillary software tools.

The company’s chief financial officer said, “Our company pursued Mazuma because the transaction was creative in meeting our asset mix and accounting treatment requirements, with competitive pricing and terms too. In addition, their staff was great to work with!”

Mazuma’s Executive Vice President of Sales Matt Burrows said, “There were a number of hurdles with this transaction. The company had an abridged operating history and the collateral was somewhat atypical. We just look at every situation and figure out what it takes to make it work. Clearly some transactions require more creativity, but we can often find a fit when other lessors capitulate.”

Mazuma Capital Completes $4.8 Million Healthcare Transaction

Michael Smith — Wed, 01 Apr 2009 01:07:37 +0000

Draper, Utah, March 31st–Mazuma Capital today announces it has completed a $4.8 million lease facility for a western not-for-profit healthcare provider. The hallmark of the company is honoring diverse issues on a community-by-community basis within an omnibus healthcare system spanning multiple states.

Most large healthcare conglomerates attract willing lenders. This lessee was no different, drawing multiple money-center institutions offering senior principal commitments totaling nearly a billion dollars to finance budgeted projects. However, crafting a transaction that was both effective and flexible-and largely soft costs-was a deal only Mazuma could bring to fruition.

In addition to capital equipment, 80% of the lease was for soft costs, and none of the company’s incumbent lenders could provide financing for such ethereal collateral. The company also had multiple objectives concerning the tax and accounting treatment of the lease, and we were able to provide them with a creative structure that met their needs.

“They needed a lease structure that would allow them to fund their projects over a 10-month period without incurring additional origination fees or punitive interest on idle capital,” said Matt Burrows, Executive Vice President of Sales for Mazuma Capital. “We did this by structuring the deal into four separate schedules under a master lease agreement that mirrors their senior credit facility agreement.”

Mike Lee, Former US Supreme Court Clerk and General Counsel to Utah Governor Jon M. Hunstman, Joins Mazuma Board

Michael Smith — Wed, 25 Mar 2009 16:10:20 +0000

Draper, Utah, March 25th, 2009-Mazuma Capital, a leading national direct lender, has appointed Michael S. Lee to the company’s board of directors. Lee was selected for his diverse government and legal experience and his astute business acumen.

Lee, an attorney and partner with Washington DC-based law firm Howrey, LLP, will serve as an independent board director. Annual growth of more than 30% since inception has inspired Mazuma Capital’s senior management team to seek the insights of a seasoned practitioner outside the leasing industry.

“We welcome Mike to Mazuma’s Board and believe that the company will benefit greatly from his leadership and experience,” said Mazuma Capital President and Chief Executive Officer Jared Belnap. “Mike brings an incredible wealth of knowledge and wisdom to Mazuma from having tilted at the windmills of constitutional law and US Supreme Court litigation in the most esteemed court of our country,” said Belnap.

“Mazuma has a very dynamic business and the team has done an incredible job of establishing itself as a strong middle-market player in a short period of time,” said Lee. “I’m very pleased and eager to join the board.”

Mike Lee focuses primarily on appellate litigation, and has represented a wide variety of corporate, non-profit, and governmental clients in cases pending before various appellate courts throughout the country, including the US Supreme Court. As a complement to his appellate litigation practice, Mr. Lee has developed a unique type of government-relations practice–one that draws upon his expertise in constitutional law and statutory construction, and is devoted to helping businesses formulate comprehensive legal and political strategies to hasten the resolution of regulatory and litigation-related threats to their success.

Following law school, Mr. Lee served as a clerk to Judge Dee V. Benson, of the US District Court for the District of Utah (1997-1998), and then to Judge Samuel A. Alito, then of the US Court of Appeals for the Third Circuit (1998-1999). After spending several years in private practice, Mr. Lee became an Assistant US Attorney in Salt Lake City, where he argued a total of eighteen cases before the Tenth Circuit, and prepared briefs in scores of others. Mr. Lee was named as General Counsel to Utah Governor Jon M. Huntsman in January 2005. As General Counsel, Mr. Lee’s duties included everything from interviewing judicial nominees to overseeing the State’s litigation and lobbying efforts in matters deemed important to the Governor’s policy objectives. He left the Governor’s Office in July 2006 to begin a US Supreme Court clerkship with Justice Alito. He joined Howrey in September 2007.

About Howrey: We know that our firm is a large, multi-faceted, growing, global business that requires planning, innovation and investment to keep pace with the complex disputes our clients face. We understand that sound business principles must also be applied to the large, demanding and costly litigations we manage. Innovative staffing, reliable budgeting and budget management, technology based support systems, and other value engineering techniques are all components of the Howrey case management strategy.

Mazuma Capital Funds $7.65 Million Mining Equipment for National Coal Company

Michael Smith — Wed, 25 Mar 2009 09:34:57 +0000

Draper, Utah, March 25, 2009-Mazuma Capital announces it has financed a monolithic mining system for a leading Appalachian coal producer. The privately held company controls mines in multiple states and has copious reserves of rich metallurgical-rated coal.

Metallurgical coal is the prized class of coal needed in steel making and is distinguished by its special quality characteristics including high carbon content, low expansion pressure, low sulfur content, and various other chemical attributes. Metallurgical coal is also high in heat content and desirable to utilities as fuel for electricity generation. Consequently, metallurgical coal producers, such as the lessee, can select markets eliciting premium revenue.

The chief financial officer of the company said, “Mazuma Capital came through when others couldn’t. We received promises from other large money centers that were later broken. Mazuma came through with a competitive rate and structure and delivered on their commitments. This $7.65 million mining system is critical to our profitability.”

“Our team is fixated on customer service and crafting solutions,” said Jared Belnap, president and CEO of Mazuma Capital.” “Buddy Zarbock, our VP of Vendor Relations, orchestrated the relationship between lessee and the vendor masterfully. A transaction of this size and scope is intricate and requires matchless dedication to make it a win for all parties.

Mazuma Capital VP Nancy Eggan Rises to Executive Vice President of Operations

Michael Smith — Wed, 04 Feb 2009 07:00:49 +0000

Draper, Utah, February 5, 2009–Mazuma Capital, a leading national direct lender, announces Nancy Eggan has been promoted to executive vice president of operations and documentation.

“Nancy is the architect and guardian of Mazuma’s entire documentation process. Every aspect of her role in the company directly impacts our P&L,” said Jared Belnap, Mazuma’s president and CEO. “We rely on her wealth of industry expertise to secure and protect our interests. Our strong underwriting relationships are a reflection of her uncompromising standards and diligence,” said Belnap.

“The most refreshing and challenging aspect of our business is that every deal is unique. Creative thinking is vital for customizing a transaction that meets all the parties’ needs. This process requires research, responsiveness and sometimes a little inspiration,” said Eggan.

Eggan has more than thirty years of experience in the leasing industry. Prior to her role at Mazuma she served as vice president of operations and documentation at Applied Financial, LLC and has worked in similar roles for other finance companies including Matrix Funding Corporation, Cottonwood Thrift and Loan, and FMA Leasing Company.

Mazuma Capital Completes Creative Concessionaire Transaction

Michael Smith — Mon, 02 Feb 2009 16:46:10 +0000

Draper, Utah, February 2, 2009-Mazuma Capital, a leading national direct lender, announces it has committed $3,200,000 in a lease transaction with a national airport concessionaire. The beneficiary company is using proceeds for new construction and renovation of guest-friendly restaurants in the countries busiest airports.

Finding no quarter with its incumbent banking relationships or other lessors, the concessionaire turned to Mazuma Capital. The transaction is distinct from multiple perspectives. With proceeds being used for lease-hold improvements, a lessor is left with no remarketing prospects for its asset. Compounding the soft-asset challenge is that Mazuma functionally surrenders its rights to the property as the equipment is in service in the untouchable realm of the Transportation Security Administration-beyond the security checkpoints. A crowning innovation is that Mazuma financed an amount beyond the net worth of the lessee.

“Crafting this scope of deal requires a genuine partnership with our client and a deep understanding of their cash flows and a profound confidence in their forecast,” said Mazuma Executive Vice President of Sales, Matt Burrows.