SAN JOSE, Calif.--(BUSINESS WIRE)--March 30, 1995--Leasing Solutions, Inc. (NASDAQ: LSSI), announced today that Leasing Solutions Receivables, Inc., its wholly-owned subsidiary, has completed a private placement of $17.5 million of non-recourse, subordinated debt securities, with a coupon of 9.71%.

The non-recourse notes are collateralized by the residual cash flows from the portfolios of equipment and leases financed by the subsidiary's public offerings of $74 million of non-recourse, lease-backed debt securities during 1994. The transaction was placed with a major U.S. insurance company. Prudential Securities acted as the placement agent for the offering.

This offering provides a unique method of financing the "equity" portion of equipment acquisitions. As the Company finances future lease portfolios through the public debt market, the collateral provided by residual cash flows from those portfolios are expected to permit future subordinated debt offerings.

"This new method of financing our transaction-related equity provides an extremely attractive financing alternative to our company. This arrangement avoids the necessity of a dilutive public offering of common stock and is relatively lower in cost than customary alternatives," said Hal Krauter, President of Leasing Solutions. "As a capital intensive business, it is extremely helpful to have a financing alternative for the transaction-related equity necessary to fuel our growth, that reduces our reliance on the public equity markets. This transaction also expands our excellent working relationship with Prudential Securities," added Krauter.We were able to place this unique type of security for Leasing Solutions because of the Company's outstanding historical remarketing results and the excellent makeup of lessees and equipment in its securitized portfolios," said Shanker Lall Merchant, a Managing Director of Prudential Securities.

Leasing Solutions, founded in 1986, is a full-service vendor leasing company that specializes in leasing information processing and communications equipment, principally to large, creditworthy customers. Most leases written by the Company qualify as operating leases. Leasing Solutions has purchased $500 million of equipment, representing over 140,000 assets, and currently services over 350 customers. Based in San Jose, the Company maintains regional leasing offices in Atlanta, Boston, Chicago, Dallas and San Jose.