RCC Finance Group to Provide $50 Million in Lease Financing To Coyote Network Systems Customers
WESTLAKE VILLAGE, Calif., June 29 /PRNewswire/ -- Coyote Network Systems, Inc. (Nasdaq: CYOE - news) today announced that RCC Finance Group, Ltd. (RCC) has agreed to terms under which it will provide $50 million in lease financing to Coyote customers for the purchase of telecom switching and related products and services. Financing for individual Coyote customers will be made on a case-by-case basis, depending on the customer's creditworthiness. The goal of the parties is that not less than $50 million in new leases will be originated and funded prior to March 31, 2000. RCC is a general equipment lessor and a leader in leasing equipment for developmental stage to growth stage companies.
''We are pleased to be working with RCC Finance to enable our entrepreneurial customers to expand their capabilities,'' said Daniel J. Latham, president and chief operating officer, Coyote Network Systems. ''Switched-based carriers can offer a wider array of revenue-generating services than switchless carriers, and at lower costs. With lease financing, carriers will be better able to offer their customers bundled local, long distance and data services.''
''RCC is proud to have been selected to provide lease financing for Coyote's customers,'' said Mark Cooper, senior vice president, RCC Finance. ''When dealing with emerging telecom markets or new telecom technologies, it is essential for strategic partners to share in the same vision for the future. It is this shared vision with Coyote which allows RCC to think 'out of the box' and to create the critical financial solutions,'' Cooper stated.
One of the many areas of RCC's expertise is their ability to architecturally design a lease which will both meet the lessee's needs and simultaneously pass the enhanced credit requirement of RCC's credit committee. RCC's focus is to finance venture capital backed companies, developmental stage companies, growth stage companies and story credits.
A fundamental component of Coyote's strategy for growth is to provide a total solution, i.e., switching equipment, international long distance and network services, primarily to entrepreneurial carriers. The Company is targeting specific market segments: telecom switching, affinity-based international long distance and network services that include network design and operations services, facilities management, switch provisioning, billing administration, access to financing and customer support services.
About RCC Finance Group
RCC Finance Group, Ltd. (RCC), an equipment finance and leasing company, with over 25 years of experience, serves mid-size and Fortune 500 companies across the country. RCC provides sophisticated secured leasing products ranging generally in size from $500,000 to $50 million. RCC emphasizes European-style private financing and highly personalized service to all clients. RCC selectively develops products and services in order to be responsive to the changing needs of clients. RCC also provides investment banking services that include comprehensive credit facilities, private debt and equity placements, mergers and acquisitions, and acquisition and development lines. RCC was established in 1980 and is privately held. For more information, please visit the Company's Web site: rccfinance.com, or call 1-201-833-4480, or fax 1-201-833-4174.
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