Filed Pursuant to Rule 424(b)(3)
Registration No. 333-120276
Registration No. 333-120276
SUPPLEMENT NO. 1
ATEL Capital Equipment Fund XI, LLC
Supplement dated December 31, 2005
to the Prospectus dated April 11, 2005
of ATEL Capital Equipment Fund XI, LLC
(the “Fund”)
to the Prospectus dated April 11, 2005
of ATEL Capital Equipment Fund XI, LLC
(the “Fund”)
TABLE OF CONTENTS
Status of the offering | 1 | |||
Equipment acquisitions | 1 | |||
Distributions | 3 | |||
Management | 3 | |||
Management’s Discussion and Analysis | 4 | |||
Experts | 5 | |||
Financial Statements | F-1 | |||
Prior Performance Information | A-1 |
The Fund’s Prospectus is hereby supplemented as set forth on the following pages. This supplement is a part of and must be accompanied by the Fund’s Prospectus dated April 11, 2005. Terms not otherwise defined herein have the meaning as defined in the Prospectus.
Status of the Offering
As of May 31, 2005, the Fund had received and accepted subscriptions for 120,000 Units ($1,200,000). As a result, the escrow condition was satisfied and the subscription proceeds were released to the Fund.
As of December 31, 2005, the Fund had received and accepted subscriptions for 3,960,298 Units for total subscription proceeds in the amount of $39,602,980. As of such date, the Fund had committed all of such proceeds to equipment costs, offering and organization expenses and capital reserves.
Equipment Acquisitions
Set forth below is a summary of the portfolio acquisitions and transactions entered into or identified by the Fund as of the date of this supplement.
1
PORTFOLIO ACQUISITIONS
Equipment | Commence | Acquisition | Indebt- | |||||||||||||||||||
Lessee | Type | Date(s) (1) | Price (2) | edness (3) | Term (4) | Type (5) | ||||||||||||||||
Leases and notes funded: | ||||||||||||||||||||||
Alveolus, Inc. | Miscellaneous | Sep-05 | $ | 250,000 | $ | — | 36 | NR | ||||||||||||||
Alveolus, Inc. | Miscellaneous | Oct-05 | 125,000 | — | 36 | NR | ||||||||||||||||
Arsenal Digital Solutions | Material Handling Equipment | Dec-05 | 1,015,693 | — | 42 | NR | ||||||||||||||||
Bayer Corporation | Research | Aug-05 | 322,892 | — | 48 | HP | ||||||||||||||||
Bayer Corporation | Research | Sep-05 | 300,000 | — | 60 | HP | ||||||||||||||||
Boingo Wireless, Inc. | Computer Equipment | Nov-05 | 123,802 | — | 16 | NR | ||||||||||||||||
Chelsio Communications | Computers | Nov-05 | 27,600 | — | 24 | NR | ||||||||||||||||
Cymbet Corporation | Computer Equipment | Dec-05 | 465,774 | — | 30 | NR | ||||||||||||||||
East Midlands Ambulance | Ambulance & Emergency Vehicles | Dec-05 | 632,569 | — | 60 | HP | ||||||||||||||||
Lincolnshire Ambulance | Motor Vehicles | Jan-06 | 1,937,276 | — | 60 | HP | ||||||||||||||||
Lincolnshire Ambulance | Motor Vehicles | Nov-05 | 178,851 | — | 60 | HP | ||||||||||||||||
Locus Pharmaceuticals | Miscellaneous | Nov-05 | 500,000 | — | 36 | NR | ||||||||||||||||
Locus Pharmaceuticals, Inc. | Senior Term Loan | Nov-05 | 250,000 | — | 36 | NR | ||||||||||||||||
Meadwestvaco Corp. | Material Handling | Nov-05 | 532,159 | — | 36 | OL | ||||||||||||||||
Meadwestvaco Corp. | Material Handling | Jan-06 | 132,018 | — | 36 | OL | ||||||||||||||||
New NGC, Inc. | Manufacturing Facility | Dec-05 | 2,503,105 | — | 120 | HP | ||||||||||||||||
On24, Inc. | Computer Equipment | Nov-05 | 62,353 | — | 36 | NR | ||||||||||||||||
OpenPages, Inc. | Computer Equipment | Dec-05 | 237,345 | — | 36 | NR | ||||||||||||||||
Renal Solutions, Inc. | Miscellaneous | Aug-05 | 500,000 | — | 36 | NR | ||||||||||||||||
Technorati, Inc. | Computer Equipment | Nov-05 | 343,234 | — | 36 | NR | ||||||||||||||||
Technorati, Inc. | Computers | Nov-05 | 171,617 | — | 36 | NR | ||||||||||||||||
Technorati, Inc. | Computers | Oct-05 | 150,000 | — | 36 | NR | ||||||||||||||||
Union Pacific Railroad | Rail Transport | Oct-05 | 4,987,326 | — | 120 | FP | ||||||||||||||||
Union Pacific Railroad | Rail Transport | Oct-05 | 2,479,616 | — | 118 | FP | ||||||||||||||||
Whirlpool Corporation | Material Handling Equipment | Dec-05 | 3,260,203 | — | 36,60,60 | HP | ||||||||||||||||
Total funded as of December 31, 2005: | $ | 21,488,433 | $ | — | ||||||||||||||||||
NOTES
(1) | In many cases, a lease or loan transaction is funded over a period of time according to the lessee’s or borrower’s requirements. Therefore, “Commence Date(s)” expressed as a range represents multiple lease and loan commencement dates occurring or anticipated under the same transaction line. | |
(2) | “Acquisition Price” includes either amounts committed to lessees or borrowers by the Fund, or actual transaction acquisition costs as of December 31, 2005. All figures are rounded to the nearest dollar. For any transactions which are not fully funded, the “Acquisition Price” may change as a result of ongoing fundings. To the extent that the transaction is not fully funded, the information in the table represents the Managing Member’s best estimates as to the size, timing and terms of the transaction upon full funding, based on the outstanding commitment, its discussions with the lessee, the current and anticipated availability of Fund capital and other factors. There can be no assurance, however, that the portion of the transaction which has not been funded will be completed as described. | |
(3) | “Indebtedness” is the original principal amount of the debt acquired or assumed by the Fund in order to acquire the transaction and leverage the Acquisition Price. Although transactions may originally be purchased for all cash, the Managing Member may subsequently leverage equipment in order to achieve an overall debt-equity balance for the portfolio. | |
(4) | “Term” is expressed in terms of months, although actual lease and loan terms may be monthly, quarterly, semiannual or annual. | |
(5) | A designation of “FP” indicates that the aggregate rents to be received during the Term equal or exceed the Acquisition Price of the transaction. A designation of “HP” indicates that the aggregate contracted payments to be received during the Term equal or exceed 90% of the Acquisition Price of the Equipment. A designation of “OL” indicates that the aggregate payments to be received during the Term are less than 90% of the Acquisition Price. A designation of “NR” indicates that the transaction is a note receivable. |
2
Distributions
The following table is a summary of cash distributions by the Fund to Holders to the date of this Supplement. Distributions may be characterized for tax, accounting and economic purposes as a return of capital, a return on capital or a portion of each. Generally, the portion of each cash distribution by a company which exceeds its net income for the fiscal period would constitute a return of capital.
The source of all cash distributions has been cash received by the Fund from its operations, including cash received from leases and loans and interest income.
Weighted | ||||||||||||||||||||||
Total | Average | |||||||||||||||||||||
Distribution | Month | Return of | Distribution | Total | Distribution | Units | ||||||||||||||||
Period (1) | Paid | Capital | of Income | Distribution | per Unit (2) | Outstanding | ||||||||||||||||
June 2005 | July 2005 | $ | 29,852 | $ | — | $ | 29,852 | $ | 0.066667 | 447,780 | ||||||||||||
July 2005 | August 2005 | 62,624 | — | 62,624 | 0.066667 | 939,360 | ||||||||||||||||
August 2005 | September 2005 | 92,922 | — | 92,922 | 0.066667 | 1,393,830 | ||||||||||||||||
September 2005 | October 2005 | 124,283 | — | 124,283 | 0.066667 | 1,864,245 | ||||||||||||||||
October 2005 | November 2005 | 163,854 | — | 163,854 | 0.066667 | 2,457,810 | ||||||||||||||||
November 2005 | December 2005 | 183,457 | — | 183,457 | 0.066667 | 2,751,855 | ||||||||||||||||
656,992 | — | 656,992 | $ | 0.40 | ||||||||||||||||||
June 2005 | July 2005 | 2,128 | — | 2,128 | $ | 0.200000 | 10,640 | |||||||||||||||
September 2005 | October 2005 | 41,833 | — | 41,833 | 0.200000 | 209,165 | ||||||||||||||||
43,961 | — | 43,961 | $ | 0.400000 | ||||||||||||||||||
$ | 700,953 | $ | — | $ | 700,953 | |||||||||||||||||
(1) | Investors may elect to receive their distributions either monthly or quarterly. See “Timing and Method of Distributions” on Page 58 of the Prospectus. The monthly distributions in the table include only those distributions made to investors on a monthly basis. The quarterly distributions in the table include only those distributions made to investors on a quarterly basis. | |
(2) | Total distributions per Unit represents the per Unit distribution rate for those Units which were outstanding for all of the applicable period. |
Management
The Manager
Effective July 31, 2005, Donald Carpenter relinquished his position as controller of the Manager, ATEL Financial Services, LLC, and its affiliates. Mr. Carpenter will remain a consultant to ATEL Capital Group until his intended retirement in July 2006. Effective September 30, 2005 Elif Kuvvetli left her position as corporate controller of the Manager and its affiliates to pursue other interests. Paritosh Choksi continues to serve in the capacity of Chief Financial Officer of ATEL and its affiliates, a position he has had since 1999.
Management of the Fund’s Operations and Administration
As disclosed in Current Reports filed by each of the active prior public programs managed by the Manager in October and November 2005, a review of certain accounting controls and procedures has resulted in these programs need to restate their respective financial statements for the periods ended December 31, 2004 and for the first two
3
quarters of 2005. This need to restate their financial statements reflects a material weakness in the Manager’s disclosure controls and procedures with respect to the prior programs and the Fund. The Manager is taking steps to assure accurate and complete reporting for all future periods.
Management’s Discussion and Analysis
Capital Resources and Liquidity
The Fund commenced its offering of Units on April 11, 2005. On May 31, 2005, the Fund commenced operations in its primary business (leasing and lending activities). Until the Fund’s initial portfolio of equipment has been purchased, funds that have been received, but that have not yet been invested in leased equipment, are invested in interest-bearing accounts or high-quality/short-term commercial paper. The Fund’s public offering provides for a total maximum capitalization of $150,000,000.
During the funding period, the Fund’s primary source of liquidity will be subscription proceeds from the public offering of Units. As of September 30, 2005, $24,805,730 had been contributed. The liquidity of the Fund will vary in the future, increasing to the extent proceeds from the offering, cash flows from leases and proceeds of asset sales exceed expenses, and decreasing as lease assets are acquired, as distributions are made to the Members and to the extent expenses exceed cash flows from leases and proceeds from asset sales.
As another source of liquidity, the Fund may enter into contractual obligations with a diversified group of lessees for fixed lease terms at fixed rental amounts. As the initial lease terms expire, the Fund will re-lease or sell the equipment. The future liquidity beyond the contractual minimum rentals will depend on AFS’s success in re-leasing or selling the equipment as it comes off lease.
Throughout the Reinvestment Period (as defined in the Limited Liability Company Operating Agreement), the Fund anticipates reinvesting a portion of lease payments from assets owned in new leasing transactions. Such reinvestment will occur only after the payment of all obligations, including debt service (both principal and interest), the payment of management fees to AFS and providing for cash distributions to the Members.
As of September 30, 2005, the Fund had outstanding commitments to purchase lease equipment of approximately $15,733,174 which may be funded during the year ended December 31, 2005. This amount represents contract awards which may be cancelled by the prospective lessee or may not be accepted by the Fund.
Cash Flows
During the first three quarters of 2005, the Fund’s primary source of liquidity was the proceeds of its offering of Units. As of September 30, 2005, 2,480,623 units have been sold.
During this same period, the primary use of cash consisted of payments of commissions and syndication costs associated with the offering. As of September 30, 2005, $3,495,486 of these costs have been paid to the Managing Member.
During the first three quarters of 2005, the primary investing use of cash was the purchase of approximately $644,000 operating lease assets, and approximately $987,000 advances on notes receivable.
Results of Operations
In the first three quarters of 2005, operations consisted of interest income earned on cash and cash equivalents and notes receivable, as well as operating lease income less cost reimbursements to the Managing Member and other expenses. Results of operations in future periods are expected to vary considerably from those of the first three
4
quarters of 2005 as the Fund continues to receive offering proceeds and continue acquisitions of lease assets and lending activities.
For the nine month period ended September 30, 2005, operations resulted in a net income of $1,355. Revenue for this period consisted mostly of interest income from cash and cash equivalents. Additionally, the Fund began recognizing revenue from operating lease assets as well as interest on the notes receivable. We expect operating lease assets and interest on notes receivable will become the primary source of revenues and the amounts earned will increase as we continue to acquire additional assets.
For this same period, the majority of expenses consisted of cost reimbursements to the managing member, professional fees and depreciation of operating lease assets. We expect depreciation expense will increase in future periods in relation to operating lease revenues as we continue to acquire more assets.
Under the terms of the Operating Agreement, AFS is entitled to certain fees and reimbursements of costs. These amounts are expected to increase in future periods as the operations of the Fund expand.
Experts
Ernst & Young LLP, independent registered public accounting firm, has audited our balance sheet as of December 31, 2004, and the related statements of changes in members’ capital and cash flows for the period from June 25, 2004 (inception) through December 31, 2004, as set forth in their report. We’ve included our financial statements in the prospectus and elsewhere in the registration statement in reliance on Ernst & Young LLP’s report, given on their authority as experts in accounting and auditing.
Ernst & Young LLP, independent registered public accounting firm, has audited the consolidated balance sheet of ATEL Financial Services, LLC as of July 31, 2005, as set forth in their report. We’ve included the consolidated balance sheet in the prospectus and elsewhere in the registration statement in reliance on Ernst & Young LLP’s report, given on their authority as experts in accounting and auditing.
5
FINANCIAL STATEMENTS
Set forth below are the following financial statements: | ||
ATEL Capital Equipment Fund XI, LLC | ||
Balance Sheet, as of September 30, 2005 (Unaudited) | F — 2 | |
Statements of Operations for the nine and three month periods ended September 30, 2005 (Unaudited) | F — 3 | |
Statements of Changes in Members’ Capital for the period from June 25, 2004 (Inception) through December 31, 2004 and for the nine month period ended September 30, 2005 (Unaudited) | F — 4 | |
Statements of Cash Flows for the nine and three month periods ended September 30, 2005 (Unaudited) | F — 5 | |
Notes to Financial Statements (Unaudited) | F — 6 | |
ATEL Financial Services, LLC | ||
Report of Independent Auditors | F — 13 | |
Consolidated Balance Sheet, as of July 31, 2005 | F — 14 | |
Notes to Consolidated Financial Statements | F — 15 |
F-1
ATEL CAPITAL EQUIPMENT FUND XI, LLC
BALANCE SHEET
SEPTEMBER 30, 2005
(unaudited)
(unaudited)
ASSETS | ||||
Cash and cash equivalents | $ | 19,770,290 | ||
Accounts receivables and other assets | 3,350 | |||
Prepaid syndication costs | 124,309 | |||
Notes receivable | 987,308 | |||
Investments in operating leases, net | 644,495 | |||
Total assets | $ | 21,529,752 | ||
LIABILITIES AND MEMBERS’ CAPITAL | ||||
Accounts payable and accruals: | ||||
Managing Member | $ | 224,821 | ||
Other | 165,641 | |||
Other liabilities | 29,970 | |||
Total liabilities | 420,432 | |||
Members’ capital: | ||||
Managing Member | (15,105 | ) | ||
Other Members | 21,124,425 | |||
Total Members’ capital | $ | 21,109,320 | ||
Total liabilities and Members’ capital | $ | 21,529,752 | ||
See accompanying notes.
F-2
ATEL CAPITAL EQUIPMENT FUND XI, LLC
STATEMENTS OF OPERATIONS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 2005
(Unaudited)
(Unaudited)
Nine months | Three months | |||||||
ended September 30, | ended September 30, | |||||||
2005 | 2005 | |||||||
Revenues: | ||||||||
Interest income | $ | 102,850 | $ | 94,994 | ||||
Operating lease income | 14,270 | 14,270 | ||||||
Notes receivable interest income | 12,062 | 12,062 | ||||||
Other | 3,750 | 3,750 | ||||||
132,932 | 125,076 | |||||||
Expenses: | ||||||||
Cost reimbursements to Managing Member | 95,678 | 78,165 | ||||||
Professional fees | 11,105 | 11,105 | ||||||
Depreciation of operating lease assets | 10,946 | 10,946 | ||||||
Equipment and incentive management fees to Managing Member | 2,561 | 2,561 | ||||||
Amortization of initial direct costs | 1,566 | 1,566 | ||||||
Other | 9,721 | 8,694 | ||||||
131,577 | 113,037 | |||||||
Net income | $ | 1,355 | $ | 12,039 | ||||
Net income (loss): | ||||||||
Managing Member | 15,205 | 15,205 | ||||||
Other Members | (13,850 | ) | (3,166 | ) | ||||
$ | 1,355 | $ | 12,039 | |||||
Net income (loss) per Limited Liability Company Unit (Other Members) | $ | (0.01 | ) | $ | 0.00 | |||
Weighted average number of Limited Liability Company Units outstanding | 1,067,659 | 1,609,823 |
See accompanying notes.
F-3
ATEL CAPITAL EQUIPMENT FUND XI, LLC
STATEMENT OF CHANGES IN MEMBERS’ CAPITAL
FOR THE PERIOD FROM JUNE 25, 2004 (INCEPTION)
THROUGH DECEMBER 31, 2004
AND FOR THE
NINE MONTH PERIOD ENDED
SEPTEMBER 30, 2005
(Unaudited)
THROUGH DECEMBER 31, 2004
AND FOR THE
NINE MONTH PERIOD ENDED
SEPTEMBER 30, 2005
(Unaudited)
Units | Amount | |||||||
Members’ Capital as of June 25, 2004 (inception) | — | $ | — | |||||
Capital contributions | 150 | 600 | ||||||
Balance December 31, 2004 | 150 | 600 | ||||||
Capital contributions | 2,480,573 | 24,805,730 | ||||||
Less selling commissions and other syndication costs to affiliates | — | (3,495,486 | ) | |||||
Less distributions to Other Members | — | (187,674 | ) | |||||
Less distributions to Managing Member | — | (15,205 | ) | |||||
Net income | — | 1,355 | ||||||
Balance September 30, 2005 | 2,480,723 | $ | 21,109,320 | |||||
See accompanying notes.
F-4
ATEL CAPITAL EQUIPMENT FUND XI, LLC
STATEMENT OF CASH FLOWS
NINE AND THREE MONTH PERIODS ENDED
SEPTEMBER 30, 2005
(Unaudited)
SEPTEMBER 30, 2005
(Unaudited)
Nine months | Three months | |||||||
ended September 30, | ended September 30, | |||||||
2005 | 2005 | |||||||
Operating activities: | ||||||||
Net income | $ | 1,355 | $ | 12,039 | ||||
Adjustment to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation of operating lease assets | 10,946 | 10,946 | ||||||
Amortization of initial direct costs | 1,566 | 1,566 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (3,234 | ) | (3,234 | ) | ||||
Other assets | (116 | ) | (116 | ) | ||||
Accounts payable, Managing Member | 224,821 | 205,563 | ||||||
Accounts payable, other | 165,641 | (21,674 | ) | |||||
Prepaid syndication costs | (124,309 | ) | 143,061 | |||||
Other liabilities | 29,970 | 29,970 | ||||||
Net cash provided by operating activities | 306,640 | 378,121 | ||||||
Investing activities: | ||||||||
Investment in operating leases | (615,112 | ) | (615,112 | ) | ||||
Investment in notes receivable | (987,308 | ) | (987,308 | ) | ||||
Payments of initial direct costs to Managing Member | (41,895 | ) | (41,895 | ) | ||||
Net cash used in investing activities | (1,644,315 | ) | (1,644,315 | ) | ||||
Financing activities: | ||||||||
Capital contributions received | 24,805,730 | 17,863,890 | ||||||
Payment of commissions and syndication cost to Managing Member | (3,495,486 | ) | (2,664,020 | ) | ||||
Distributions to Other Members | (187,674 | ) | (187,674 | ) | ||||
Distributions to Managing Member | (15,205 | ) | (15,205 | ) | ||||
Net cash provided by financing activities | 21,107,365 | 14,996,991 | ||||||
Net increase in cash and cash equivalents | 19,769,690 | 13,730,797 | ||||||
Cash and cash equivalents at beginning of period | 600 | 6,039,493 | ||||||
Cash and cash equivalents at end of period | $ | 19,770,290 | $ | 19,770,290 | ||||
See accompanying notes.
F-5
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
(Unaudited)
(Unaudited)
1. Organization and Limited Liability Company matters:
ATEL Capital Equipment Fund XI, LLC (the “Company”) was formed under the laws of the state of California on June 25, 2004 for the purpose of acquiring equipment to engage in equipment leasing, lending and sales activities. The Company may continue until December 31, 2025. ATEL Financial Services, LLC (“AFS”), an affiliated entity, acts as the Managing Member of the Company. Contributions in the amount of $24,806,330 were received as of September 30, 2005, $100 of which represented the Managing Member’s continuing interest.
The Company is conducting a public offering of 15,000,000 Limited Liability Company Units (Units) at a price of $10 per Unit. Upon the sale of the minimum amount of Units of 120,000 Units ($1,200,000) and the receipt of the proceeds thereof on May 31, 2005, the Company commenced operations.
As a limited liability company, the liability of any individual member “unit holder” or “other member” for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member.
The Company, or AFS on behalf of the Company, will incur costs in connection with the organization, registration and issuance of the Limited Liability Company Units (Units). The amount of such costs to be borne by the Company is limited by certain provisions of the Company’s Operating Agreement.
The Company’s principal objectives are to invest in a diversified portfolio of equipment that will (i) preserve, protect and return the Company’s invested capital; (ii) generate regular distributions to the members of cash from operations and cash from sales or refinancing, with any balance remaining after certain minimum distributions to be used to purchase additional equipment during the Reinvestment Period, as defined, and (iii) provide additional distributions following the Reinvestment Period and until all equipment has been sold. The Company is governed by its Limited Liability Company Operating Agreement (Operating Agreement).
The Company is in its acquisition phase and is making distributions on a monthly and quarterly basis. Distributions commenced in the third quarter of 2005.
2. Summary of significant accounting policies:
Basis of presentation:
The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with instructions to Form 10-QSB and Article 10 of Regulation S-X. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary to a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that effect reported amounts in the financial statements and accompanying notes. Therefore, actual results could differ from those estimates. Operating results for the nine months ended September 30, 2005 are not necessarily indicative of the results for the year ending December 31, 2005.
These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-KSB for the year ended December 31, 2004, filed with the Securities and Exchange Commission.
F-6
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
(Unaudited)
(Unaudited)
2. Summary of significant accounting policies (continued):
Cash and cash equivalents:
Cash and cash equivalents include cash in banks and cash equivalent investments with original maturities of ninety days or less.
Use of estimates:
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheet. Actual results could differ from those estimates.
Equipment on operating leases:
Equipment on operating leases is stated at cost. Depreciation is being provided by use of the straight-line method over the terms of the related leases to the equipment’s estimated residual values at the end of the leases.
Asset Valuation:
Recorded values of the Company’s asset portfolio are periodically reviewed for impairment in accordance with Statement of Financial Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by the discounted estimated future cash flows) of the assets and its carrying value on the measurement date.
Revenue recognition:
Operating leases
Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally expected to be for 36 to 84 months. Income from step rent provisions, escalation clauses, capital improvement funding provisions or other lease concessions in lease contracts, and lease rates subject to variation based on changes in market indexes or interest rates are recognized on a straight line basis.
Direct finance leases
Income from direct financing lease transactions is reported using the financing method of accounting, in which the Company’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding.
F-7
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
(Unaudited)
(Unaudited)
2. Summary of significant accounting policies (continued):
Notes receivable
Income from notes receivable is reported using the financing method of accounting. The Company’s investment in notes receivable is reported as the present value of the future note payments. The income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding.
Initial direct costs:
The Company capitalizes initial direct costs associated with the acquisition of lease assets. These costs are amortized over the lease term either as an adjustment to the yield for direct finance leases or on a straight-line basis for operating leases.
Segment Reporting:
The Company adopted the provisions of SFAS No. 131 Disclosures about Segments of an Enterprise and Related Information. SFAS No. 131 establishes annual and interim standards for operating segments of a company. It also requires entity-wide disclosures about the products and services an entity provides, the material countries in which it holds assts and reports revenue, and its major customers. The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly the Company operates in one reportable operating segment in the United States.
3. Investment in equipment leases:
The Company’s investment in leases consists of the following:
Depreciation/ | ||||||||||||||||
Amortization | ||||||||||||||||
Expense or | ||||||||||||||||
Amortization | ||||||||||||||||
Balance | of Direct | Balance | ||||||||||||||
December 31, | Financing | September 30, | ||||||||||||||
2004 | Additions | Leases | 2005 | |||||||||||||
Net investment in operating leases | $ | — | $ | 615,112 | $ | (10,946 | ) | $ | 604,166 | |||||||
Initial direct costs, net of accumulated amortization of $1,566 in 2005 | — | 41,895 | (1,566 | ) | 40,329 | |||||||||||
$ | — | $ | 657,007 | $ | (12,512 | ) | $ | 644,495 | ||||||||
All of the property on leases was acquired in 2005.
F-8
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
(Unaudited)
(Unaudited)
3. Investment in equipment leases (continued):
Operating leases:
Property on operating leases consists of the following:
Balance | Balance | |||||||||||
December 31, | September 30, | |||||||||||
2004 | Additions | 2005 | ||||||||||
Manufacturing | $ | — | $ | 615,112 | $ | 615,122 | ||||||
Less accumulated depreciation | — | (10,946 | ) | (10,946 | ) | |||||||
$ | — | $ | 604,166 | $ | 604,166 | |||||||
At September 30, 2005, the aggregate amounts of future minimum lease payments to be received are as follows:
Total | ||||||||
Three months ending December 31, 2005 | $ | 18,383 | ||||||
Year ending December 31, 2006 | 73,530 | |||||||
2007 | 73,530 | |||||||
2008 | 73,530 | |||||||
2009 | 42,893 | |||||||
$ | 281,866 | |||||||
The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of lease transactions. The useful lives for investment in leases by category are as follows:
Equipment category | Useful Life | |||
Manufacturing | 10 - 20 |
F-9
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
(Unaudited)
(Unaudited)
4. Notes receivable:
The Company has various notes receivable from parties who have financed the purchase of equipment through the Company. The terms of the notes receivable are 18 to 60 months and bear interest at rates ranging from 11% to 22%. The notes are secured by the equipment financed. As of September 30, 2005, the minimum future payments receivable are as follows:
Three months ending December 31, 2005 | $ | 104,755 | ||||||
Year ending December 31, 2006 | 383,730 | |||||||
2007 | 383,730 | |||||||
2008 | 291,134 | |||||||
$ | 1,163,349 | |||||||
Less portion representing interest | (176,041 | ) | ||||||
$ | 987,308 | |||||||
5. Related party transactions:
The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company.
The Operating Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Company. Administrative services provided include Company accounting, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment. Reimbursable costs incurred by AFS are allocated to the Company based upon estimated time incurred by employees working on Company business and an allocation of rent and other costs based on utilization studies.
Each of ATEL Leasing Corporation (“ALC”), ATEL Equipment Corporation (“AEC”), ATEL Investor Services (“AIS”) and ATEL Financial Services LLC is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services are performed for the Company by ALC, equipment management, lease administration and asset disposition services are performed by AEC, investor relations and communications services are performed by AIS and general administrative services for the Company are performed by AFS.
Cost reimbursements to the Managing Member are based on costs incurred by AFS in performing administrative services for the Company that are allocated to each fund that AFS manages based on certain criteria such as existing or new leases, and number of investors or equity depending on the type of cost incurred. AFS believes that the costs reimbursed are the lower of (i) actual costs incurred on behalf of the Company or (ii) the amount the Company would be required to pay independent parties for comparable administrative services in the same geographic location.
During the nine and three month periods ended September 30, 2005, AFS and/or affiliates earned fees, commissions and reimbursements, pursuant to the Operating Agreement as follows:
F-10
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
(Unaudited)
(Unaudited)
5. Related party transactions (continued):
Nine Months | Three Months | |||||||
Ended September 30, | Ended September 30, | |||||||
2005 | 2005 | |||||||
Selling commissions, equal to 9% of the selling price of the Limited Liability Company units, deducted from Other Members’ capital | $ | 2,232,516 | $ | 1,607,750 | ||||
Reimbursement of other syndication costs to Managing Member, deducted from Other Members’ capital | 1,262,970 | 1,056,270 | ||||||
Other operating expenses | 95,678 | 78,165 | ||||||
$ | 3,591,164 | $ | 2,742,185 | |||||
The Managing Member, on behalf of the Company, will incur syndication costs in connection with the organization, registration and issuance of the Limited Liability Company Units (Units). As of September 30, 2005, total syndication costs incurred and reimbursed by the Company to the Managing Member exceeded the syndication cost limitations as defined in the Operating Agreement. The amounts in excess of the limit are recorded as prepaid syndication costs. As the limit increases, based on increased sales of the Units, the prepaid syndication costs are recorded as a reduction to Members’ capital.
6. Members’ capital:
As of September 30, 2005, 2,480,623 Units were issued and outstanding. The Fund is authorized to issue up to 15,000,000 Units.
Distributions to the Other Members were as follows:
Nine Months | Three Months | |||||||
Ended September 30, | Ended September 30, | |||||||
2005 | 2005 | |||||||
Distributions to other members | $ | 187,674 | $ | 187,674 | ||||
Weighted average number of Units outstanding | 1,067,659 | 1,609,823 | ||||||
Weighted average distributions per Unit | $ | 0.18 | $ | 0.12 |
7. Commitments:
As of September 30, 2005, the Company had outstanding commitments to purchase lease equipment of approximately $15,733,174 which may be funded during the year ended December 31, 2005. This amount represents contract awards which may be cancelled by the prospective lessee or may not be accepted by the Company.
8. Financing Arrangement:
The Company participates with AFS and certain of its affiliates in a financing arrangement (comprised of a term loan to AFS and a line of credit) with a group of financial institutions that includes certain financial covenants. The financial arrangement is $75,000,000 and expires in June 2007. The availability of borrowings to the Company under this financing arrangement is reduced by the amount AFS has outstanding as a term loan. As of September 30, 2005 borrowings under the facility were as follows:
F-11
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
(Unaudited)
(Unaudited)
8. Financing Arrangement (continued):
Total amount available under the financing arrangement | $ | 75,000,000 | ||
Term loan to AFS as of September 30, 2005 | — | |||
Total available under the acquisition and warehouse facilities | 75,000,000 | |||
Amount borrowed by the Company under the acquisition facility | — | |||
Amounts borrowed by affiliated partnerships and limited liability companies under the acquisition facility | (12,500,000 | ) | ||
Total remaining available under the acquisition and warehouse facilities | $ | 62,500,000 | ||
Draws on the acquisition facility by any individual borrower are secured only by that borrower’s assets, including equipment and related leases. Borrowings on the warehouse facility are recourse jointly to certain of the affiliated Memberships and limited liability companies, the Company and AFS.
The credit agreement includes certain financial covenants applicable to each borrower. The Company was in compliance with its covenants as of September 30, 2005.
9. Guarantees:
The Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
In the normal course of business, the Company enters into contracts of various types, including lease contracts, contracts for the sale or purchase of lease assets, management contracts, loan agreements, credit lines and other debt facilities. It is prevalent industry practice for most contracts of any significant value to include provisions that each of the contracting parties — in addition to assuming liability for breaches of the representations, warranties, and covenants that are part of the underlying contractual obligations — also assume an obligation to indemnify and hold the other contracting party harmless for such breaches, for harm caused by such party’s gross negligence and willful misconduct, including, in certain instances, certain costs and expenses arising from the contract. The Managing Member has substantial experience in managing similar leasing programs subject to similar contractual commitments in similar transactions, and the losses and claims arising from these commitments have been insignificant, if any. Generally, to the extent these contracts are performed in the ordinary course of business under the reasonable business judgment of the Managing Member, no liability will arise as a result of these provisions. The Managing Member has no reason to believe that the facts and circumstances relating to the Company’s contractual commitments differ from those it has entered into on behalf of the prior programs it has managed. The Managing Member knows of no facts or circumstances that would make the Company’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Company believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Company’s similar commitments is remote. Should any such indemnification obligation become payable, the Company would separately record and/or disclose such liability in accordance with GAAP.
F-12
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Members
ATEL Financial Services, LLC
ATEL Financial Services, LLC
We have audited the accompanying consolidated balance sheet of ATEL Financial Services, LLC (the “Company”) and subsidiary as of July 31, 2005. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on this balance sheet based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated balance sheet referred to above present fairly, in all material respects, the consolidated financial position of ATEL Financial Services, LLC and subsidiary at July 31, 2005, in conformity with accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
San Francisco, California
January 6, 2006
January 6, 2006
F-13
ATEL FINANCIAL SERVICES, LLC AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
July 31, 2005
ASSETS | ||||
Cash and cash equivalents | $ | 1,937,553 | ||
Amounts due from affiliates | 7,004,765 | |||
Property and equipment, net of accumulated depreciation of $647,917 | 755,139 | |||
Leasehold improvements, net of accumulated amortization of $308,169 | 1,046,979 | |||
Goodwill, net of accumulated amortization of $879,520 | 23,286,883 | |||
Other assets | 244,600 | |||
Total Assets | $ | 34,275,919 | ||
LIABILITIES AND MEMBERS’ EQUITY | ||||
Liabilities: | ||||
Term loan | $ | 391,273 | ||
Subordinated convertible promissory note, due to related party | 1,000,000 | |||
Other long-term debt | 633,333 | |||
Amounts due to affiliated companies | 21,825,582 | |||
Accounts payable and accrued liabilities | 1,292,461 | |||
Derivative — interest rate swap | 26,018 | |||
Total Liabilities | 25,168,667 | |||
Members’ equity: | ||||
Accumulated other comprehensive income | (1,373 | ) | ||
Member’s equity (Note 3) | 9,108,625 | |||
Total Members’ equity | 9,107,252 | |||
Total liabilities and Members’ equity | $ | 34,275,919 | ||
See accompanying notes.
F-14
ATEL FINANCIAL SERVICES, LLC AND SUBSIDIARY
NOTES TO CONSOLIDATED BALANCE SHEET
JULY 31, 2005
1. Organization and summary of significant accounting policies:
Organization and principles of consolidation:
The consolidated balance sheet includes the accounts of ATEL Financial Services, LLC (“ATEL”) and its wholly owned subsidiary, ATEL Securities Corporation (“ASC”). ATEL is an indirect wholly owned subsidiary of ATEL Capital Group (“ACG” or the “Member”) and the financial position of ATEL would be significantly different if ATEL was autonomous.
ATEL is a California limited liability company that was formed in March 2001 to carry on the business activities that had been previously performed through that date by ATEL Financial Corporation (“AFC”), an affiliated wholly owned subsidiary of ACG. Accordingly, all the assets and liabilities of AFC were contributed by the parent, ACG, into ATEL at book value in exchange for an indirect wholly owned interest in ATEL’s members’ equity. The assets and liabilities contributed by ACG into ATEL included deferred tax assets and liabilities of AFC. Pursuant to Statement of Financial Accounting Standards (SFAS) No. 109, Accounting for Income Taxes these deferred tax assets and liabilities of ATEL were then transferred to ACG to reflect ATEL’s non-taxable status as a limited liability company.
In April 2001, ATEL acquired a 71% interest in ACG (734.938 shares of common stock) from the then controlling shareholder of ACG. In exchange for the common stock of ACG, ATEL paid $18,020,000 in cash with the balance of the consideration consisting primarily of lease receivables transferred to the seller. ATEL financed a portion of the purchase price utilizing a term loan and a convertible note (discussed in Note 6). This transaction has been accounted for as a change in control leveraged buyout transaction utilizing the purchase method of accounting. All of the purchase price was allocated to goodwill. ATEL recorded goodwill of $24,166,403 related to this transaction and amortized $879,520 of this amount through July 31, 2001, at which time amortization ceased as a result of the adoption of SFAS No 142 “Goodwill and Other Intangible Assets”
On April 16, 2004, ATEL entered into a stock redemption agreement with the former controlling shareholder of ACG to acquire an effective five percent interest in the Company. A cash consideration of $610,000 was paid for the transaction. After the transaction ATEL immediately retired such shares. This transaction was accounted for under the treasury stock method.
ATEL organizes and sponsors limited partnerships and limited liability companies (the “affiliated programs” or the “programs”) engaged in equipment leasing and sales activities. It also acts as the corporate general partner or managing member in these affiliated programs. Through these programs, ACG derives various fees and also receives reimbursements for expenses incurred on behalf of these entities, of which certain fees and expense reimbursements are allocated to ATEL, with the balance allocated to various other affiliates. The basis for determination of the types and amounts of these fees and reimbursements are provided in agreements with the various programs.
F-15
ATEL FINANCIAL SERVICES, LLC AND SUBSIDIARY
NOTES TO CONSOLIDATED BALANCE SHEET
July 31, 2005
1. Organization and summary of significant accounting policies (continued):
A portion of the fees mentioned above are subordinated to the affiliated programs’ limited partners’ and other members’ full recovery of their initial invested capital contributions plus a specified return on their investments. No earnings or equity interests from such subordinated interests have been recognized through July 31, 2005.
ATEL will continue in full force and effect until such time as the Member elects to dissolve ATEL or ATEL is otherwise dissolved. As a limited liability company, the liability of any individual member for the obligations of ATEL is limited to the extent of capital contributions to the company by the individual member.
Cash and cash equivalents:
Cash and cash equivalents include cash in banks and cash equivalent investments with original maturities of ninety days or less.
Property and equipment:
Property and equipment is stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, which range from three to seven years.
Leasehold improvements:
Leasehold improvements are stated at cost. Amortization is calculated using the straight-line method over the lives of the related leases or estimated lives, whichever is shorter.
Fair value of financial instruments:
ATEL considers amounts presented for financial instruments on the consolidated balance sheet to approximate fair value.
Credit risk:
Financial instruments that potentially subject ATEL to concentrations of credit risk include cash and cash equivalents and amounts due from affiliates. ATEL places its cash deposits and temporary cash investments with creditworthy, high quality financial institutions. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to ATEL. The Company has receivables from affiliates that are subject to credit risk which ATEL believes is minimal.
Use of estimates:
The preparation of the consolidated balance sheet in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheet. Actual results could differ from those estimates. The significant estimates were made in relation to the useful lives of property and equipment and leasehold improvements and goodwill impairment.
F-16
ATEL FINANCIAL SERVICES, LLC AND SUBSIDIARY
NOTES TO CONSOLIDATED BALANCE SHEET
July 31, 2005
1. Organization and summary of significant accounting policies (continued):
Investments in affiliated programs:
ATEL accounts for its interest as a corporate general partner (or as the managing member) in the affiliated programs at cost, or under the equity method of accounting, based on the terms of the individual affiliated partnership or operating agreements.
Investments in affiliated programs accounted for at cost do not provide for general partner distributions in the partnership agreements. Certain investments in affiliated programs accounted for at cost do not require ATEL to make additional capital contributions, and, hence, ATEL records all distributions received from these programs as income based on the cost method of accounting. These amounts are included in other assets.
The partnership/operating agreements for investments in affiliated programs accounted for under the cost method of accounting provide for general partner (or managing member) distributions, subject to limitations in the respective partnership agreements (or operating agreement). Upon dissolution of these programs, if the general partner (or managing member) has a deficiency in its capital account at the program level, a special allocation of income may be made to the general partner from the limited partners in an amount sufficient to bring the capital accounts to zero, based on the provisions of the partnership agreement (or operating agreement).
If the general partner (or managing member) has a positive capital account balance at the program level upon the dissolution of the program, a special allocation of income is made from the general partner (or managing member) to the limited partners in an amount sufficient to bring the capital accounts to zero, based on the terms of the partnership agreements (or operating agreements).
Income taxes:
ATEL does not provide for income taxes since all income and losses are allocated to the Member for inclusion in their respective tax returns.
Amounts due to affiliated companies:
Amounts due to affiliated companies represent amounts due to affiliated companies for operations on behalf of ACG and its subsidiaries.
F-17
ATEL FINANCIAL SERVICES, LLC AND SUBSIDIARY
NOTES TO CONSOLIDATED BALANCE SHEET
July 31, 2005
1. Organization and summary of significant accounting policies (continued):
Derivative financial instruments:
Statement of Financial Accounting Standards (“SFAS”) No. 133, Accounting for Derivative Instruments and Hedging Activities as amended (“SFAS 133”) established new accounting and reporting standards for derivative instruments. SFAS No. 133, as amended, requires ATEL to recognize all derivatives as either assets or liabilities on the balance sheet and measure those instruments at fair value. It further provides criteria for derivative instruments to be designated as fair value, cash flow, or foreign currency hedges, and establishes accounting standards for reporting changes in the fair value of the derivative instruments. In accordance with SFAS No. 133, ATEL records derivative hedging instruments at fair value on the balance sheet and recognizes the offsetting gains or losses as adjustments to be reported in net income or other comprehensive income, as appropriate.
ATEL currently utilizes a cash flow hedge comprised of an interest rate swap. The interest rate swap is linked to and adjusts effectively the interest rate sensitivity of specific long-term debt. The effective portion of the change in fair value of the hedging derivative is recorded as the only item in Accumulated Other Comprehensive Income (AOCI) and the ineffective portion (if any) directly in earnings. Amounts in AOCI are reclassified into earnings in a manner consistent with the earnings pattern of the underlying hedged item (generally reflected in interest expense). If a hedged item is redesignated prior to maturity, previous adjustments to AOCI are recognized in earnings to match the earnings recognition pattern of the hedged item (e.g., level yield amortization if hedging interest bearing instruments). Interest income or expense on the hedging derivative used to manage interest rate exposure is recorded on an accrual basis, as an adjustment to the yield of the hedged item over the periods covered by the contract.
Credit exposure from derivative financial instruments arises from the risk of a counterparty default on the derivative contract. The amount of the loss created by the default is the replacement cost or current positive fair value of the defaulted contract.
2. Related party transactions:
The Limited Partnership Agreements and Operating Agreements of the affiliated programs allow for the reimbursement of costs incurred by ACG and its subsidiaries in providing offering and administrative services to the programs, of which a portion of such amounts is allocated to ATEL. Administrative services provided include program accounting, investor relations, legal counsel and lease and equipment documentation. ACG and its subsidiaries are not reimbursed for services whereby they are entitled to receive a separate fee as compensation for such services, such as acquiring and overseeing the management of equipment. Reimbursable operating costs incurred by ACG and its subsidiaries are allocated to the programs based upon actual time incurred by employees working on program business and an allocation of rent and other costs based on utilization studies. As of July 31, 2005, $7,004,765 remained outstanding from affiliates for reimbursable operating and administrative costs and management fees.
F-18
ATEL FINANCIAL SERVICES, LLC AND SUBSIDIARY
NOTES TO CONSOLIDATED BALANCE SHEET
July 31, 2005
3. Adjustment to Member's equity:
In November 2005, as a result of the Company’s review of the financial statements and underlying records of the affiliated programs, the Company determined that certain costs incurred by the Company in connection with offering / syndication activities provided on behalf of the programs in prior years should have been reimbursed by the programs as allowed under the various operating agreements. Therefore, the Company recorded the net understatement of prior years expense reimbursement in the amount of $717,538 as an adjustment to members’ capital in the fiscal year ended July 31, 2005 and a corresponding increase to amounts due from affiliates.
4. Goodwill:
Goodwill of $24,166,403 was recorded in connection with the leveraged buyout of the principal shareholder of ACG in April 2001 (see Note 1). At July 31, 2005, accumulated amortization of goodwill was $879,520. In accordance with SFAS No. 142, Goodwill and Other Intangible Assets, no amortization of goodwill was recorded during the period ended July 31, 2005. On an annual basis, management reviews goodwill and other amortizable assets and evaluates events or changes in circumstances that may indicate impairment in the carrying amount of such assets. In such instances, impairment, if any, is measured on a discounted future cash flow basis. Based on management’s review, no impairment of goodwill existed during the period ended July 31, 2005.
5. Property, equipment and leasehold improvements, net:
The following is a summary by category of the depreciable assets at July 31, 2005:
Category: | ||||||||
Other equipment | $ | 469,325 | ||||||
Furniture and fixture | 776,611 | |||||||
Computer equipment | 157,120 | |||||||
Accumulated depreciation | (647,917 | ) | ||||||
Furniture, fixture and equipment, net | $ | 755,139 | ||||||
Net book value | ||||||||
Leasehold improvements | $ | 1,355,148 | ||||||
Accumulated amortization | (308,169 | ) | ||||||
Leasehold improvements, net | $ | 1,046,979 | ||||||
F-19
ATEL FINANCIAL SERVICES, LLC AND SUBSIDIARY
NOTES TO CONSOLIDATED BALANCE SHEET
July 31, 2005
6. Long-term debt:
Term loan
ATEL assumed two separate notes in association with the leveraged buyout (see Note 1). The first is a $12,000,000 term loan with a financial institution maturing in October 2006, the balance of which was $391,273 as of July 31, 2005. The effective fixed interest rate on this note is 7.88%. Principal and interest are to be paid quarterly over twenty-two consecutive quarters. A financial covenant exists whereby an amount equal to 40% of excess cash flow, as defined, is payable within 10 days after the due date of the year-end financial statements and is applied as a reduction of principal. Excess cash flow is defined as the consolidated net profit of ACG and its consolidated subsidiaries less certain distributions. ATEL was in compliance with this financial covenant as of July 31, 2005. Subsequent to year end, in August 2005, the $391,273 balance on the term loan was paid off.
ATEL has entered into an interest rate swap with a financial institution to manage the interest rate exposure associated with the variable rate term loan by effectively converting the variable rate to a fixed rate. During the term of the interest rate swap ATEL receives or pays interest on a notional principal (generally equal to the outstanding principal of the term note) based on the difference between the nominal payment rate of 5.380% and the variable receive rate indexed to a three month libor of 3.10% in July 2005. The termination of the swap coincides with the maturity of the debt, which is October 2, 2006. As a result of the excess cash flow principal payments made during fiscal year 2005, the notional amount of the swap of $3,272,727 exceeded the principal amount of the hedged debt of $391,273 by $2,881,454 as of July 31, 2005. During the year, AOCI decreased by approximately $59,000 of which approximately $124,000 was related to the decrease in the fair value of the interest rate swap and approximately $65,000 was related to the reclassification of AOCI to earnings due to hedge ineffectiveness as a result of the notional amount of the swap exceeding the principal amount of the debt. The Company will continue to account for the ineffectiveness through earnings.
Subordinated convertible promissory note
The second note assumed in association with the leveraged buyout is a subordinated convertible promissory note (subordinate to the $12,000,000 term loan) for $4,000,000 from a related party. Interest is accrued at a rate of 8% per annum paid quarterly, with an additional interest of the greater of 2% of the principal amount payable at year-end or 15% of excess cashflows as defined. In July 2004, a principal paydown of $3,000,000 was made. All outstanding principal and interest is due on December 31, 2006. Upon maturity of the term loan, the holder will have the option for a period of thirty days, to convert the outstanding principal amount of this note into 53.1538 shares of either Series A preferred stock of ACG or, if ATEL elects prior to the maturity date of the term loan to be treated as common stock of ACG. In addition, thirty-one days after the repayment date of the term loan, ATEL has the option for a period of thirty days, to convert the principal amount of this note into the conversion shares. Subsequent to year end, in September 2005, the $1,000,000 balance remaining on this subordinated promissory note along with interest of $20,444 was paid off. None of these options were exercised by the parties.
F-20
ATEL FINANCIAL SERVICES, LLC AND SUBSIDIARY
NOTES TO CONSOLIDATED BALANCE SHEET
July 31, 2005
7. Line of credit:
ATEL participates with ACG, certain other subsidiaries of ACG, and with certain affiliated programs in an approximately $75,000,000 revolving credit agreement with a group of financial institutions which expires June 28, 2007. The agreement includes an acquisition facility, a lease warehouse facility and a venture lease facility, which are used to provide bridge financing for assets on leases. Draws on the acquisition facility by any individual borrower are secured only by that borrower’s assets, including equipment and related leases. Borrowings on the warehouse facility are recourse jointly to certain of the affiliated programs, ACG and ATEL. As of July 31, 2005, no draws were outstanding on the warehouse facility. Borrowings available on the warehouse facility at July 31, 2005 total $63,108,727. Subsequent to year end the line of credit was increased to $5,000,000 available for operations and working capital. There were no draws under any of the facilities during the year ended July 31, 2005.
These facilities, when used, are collateralized by (i) leases and equipment owned by the specific borrower and financed by the lines and (ii) all other assets owned by the specific borrower except equipment, lease receipts and residual values specifically pledged to other equipment funding sources. ATEL’s borrowings under the facility are guaranteed by ACG and/or its shareholders.
The credit agreement includes certain financial covenants applicable to each borrower. ATEL was not in compliance with the financial statement preparation and submission covenant for the July 31, 2005 year end, but has received a waiver from the lenders through January 31, 2006.
8. Other long-term debt:
ATEL entered into a loan and security agreement with a lender on July 30, 2003. Under the loan and security agreement ATEL may borrow up to $1,000,000 for equipment purchases, which was borrowed in September 2004. The balance at July 31, 2005 is $633,333. The loan will be paid in 60 equal monthly installments of principal and interest payments that commenced on November 29, 2003 and will cease upon termination of the loan on October 31, 2008. The interest rate is 5.01% and is fixed.
Future minimum payments on other long term debt are as follows:
Principal | Interest | Total | |||||||||||
Year ending July 31, | Payments | Payments | Payments | ||||||||||
2006 | $ | 200,000 | $ | 27,138 | $ | 227,138 | |||||||
2007 | 200,000 | 17,118 | 217,118 | ||||||||||
2008 | 200,000 | 7,098 | 207,098 | ||||||||||
2009 | 33,333 | 209 | 33,542 | ||||||||||
$ | 633,333 | $ | 51,563 | $ | 684,896 | ||||||||
F-21
ATEL FINANCIAL SERVICES, LLC AND SUBSIDIARY
NOTES TO CONSOLIDATED BALANCE SHEET
July 31, 2005
9. Investments in affiliated programs:
ATEL has a 1% carried interest in ATEL Cash Distribution Fund VI, L.P. and a 7.5% carried interest in ATEL Capital Equipment Fund VII, L.P., ATEL Capital Equipment Fund VIII, LLC., ATEL Capital Equipment Fund IX, LLC, and ATEL Capital Equipment Fund X, LLC.
10. Commitments and contingencies:
ACG occupies office space under an operating lease expiring January 2013. Future minimum lease payments to be allocated to ATEL are $644,259 in years 2006 through 2012, and $322,130 in 2013.
F-22
EXHIBIT A
PRIOR PERFORMANCE INFORMATION
ATEL Financial Services, LLC (“ATEL”), the Manager of the Fund, and its affiliates have extensive experience in the equipment leasing industry, including: (i) originating and financing leveraged and single investor lease transactions for corporate investors, (ii) acting as a broker/packager by arranging equity and debt participants for equipment leasing transactions originated by other companies, (iii) consulting on the pricing and structuring of equipment lease transactions for banks, leasing companies and corporations, (iv) organizing and offering individual ownership and limited partnership investment leasing programs and (v) supervising and arranging for the supervision of equipment management and marketing on leasing transactions involving total equipment costs in excess of $1 billion.
In addition to the Fund, ATEL has sponsored ten prior public and three private equipment leasing programs. See “Tables I-V” for a summary of information regarding the prior public programs.
The first prior public program, ATEL Cash Distribution Fund (“ACDF”), commenced a public offering of up to $10,000,000 of its limited partnership interests on March 1, 1986. ACDF terminated its offering on December 18, 1987 after raising a total of $10,000,000 in offering proceeds from a total of approximately 1,000 investors, all of which proceeds were committed to equipment acquisitions, organization and offering expenses and capital reserves. ACDF acquired a variety of types of equipment with a total purchase cost of $11,133,679. All such equipment had been sold as of December 31, 1997.
Through December 31, 1997, ACDF had made cash distributions to its investors in the aggregate amount of $1,121.03 per $1,000 invested. Of this amount a total of $244.89 represents investment income and $876.14 represents return of capital.
The second prior public program, ATEL Cash Distribution Fund II (“ACDF II”), commenced a public offering of up to $25,000,000 (with an option to increase the offering to $35,000,000) of its limited partnership interests on January 4, 1988. ACDF II terminated its offering on January 3, 1990 after raising a total of $35,000,000 in offering proceeds from a total of approximately 3,100 investors, all of which proceeds were committed to equipment acquisitions, organization and offering expenses and capital reserves. ACDF II acquired a variety of types of equipment with a total purchase cost of $52,270,536. All such equipment had been sold as of December 31, 1998.
Through December 31, 1998, ACDF II had made cash distributions to its investors in the aggregate amount of $1,222.63 per $1,000 invested. Of this amount a total of $335.43 represents investment income and $887.20 represents return of capital.
The third prior public program, ATEL Cash Distribution Fund III (“ACDF III”), commenced a public offering of up to $50,000,000 (with an option to increase the offering to $75,000,000) of its limited partnership interests on January 4, 1990. ACDF III terminated its offering on January 3, 1992 after raising a total of $73,855,840 in offering proceeds from a total of approximately 4,822 investors, all of which proceeds were committed to equipment acquisitions, organization and offering expenses and capital reserves. ACDF III acquired a variety of types of equipment with a total purchase cost of $99,629,942. All such equipment had been sold as of December 31, 2000.
Through December 31, 2000, ACDF III had made cash distributions to its investors in the aggregate amount of $1,329.76 per $1,000 invested. Of this amount a total of $379.10 represents investment income and $950.66 represents return of capital.
The fourth prior public program, ATEL Cash Distribution Fund IV (“ACDF IV”), commenced a public offering of up to $75,000,000 of its limited partnership interests on February 4, 1992. ACDF IV terminated its offering on February 3, 1993 after raising a total of $75,000,000 in offering proceeds from a total of approximately 4,873 investors, all of which proceeds were committed to equipment acquisitions, organization and offering expenses and capital reserves. ACDF IV acquired a variety of types of equipment with a total purchase cost of $108,734,880. All such equipment had been sold as of December 31, 2004.
Through December 31, 2004, ACDF IV had made cash distributions to its investors in the aggregate amount of $1,246.49 per $1,000 invested. Of this amount a total of $336.19 represents investment income and $910.30 represents return of capital.
Past performance is not necessarily indicative of future performance.
A-1
The fifth prior public program, ATEL Cash Distribution Fund V (“ACDF V”), commenced a public offering of up to $125,000,000 of its limited partnership interests on February 22, 1993. ACDF V terminated its offering on November 15, 1994. As of that date, $125,000,000 of offering proceeds had been received from approximately 7,217 investors. All of the proceeds were committed to equipment acquisitions, organization and offering expenses and capital reserves. ACDF V acquired a variety of types of equipment with a total purchase cost of $186,995,157. Of such equipment, items representing an original purchase cost of $157,625,551 had been sold as of October 31, 2005.
Through September 30, 2005, ACDF V had made cash distributions to its investors in the aggregate amount of $1,009.88 per $1,000 invested. Of this amount a total of $161.47 represents investment income and $848.41 represents return of capital.
The sixth prior public program, ATEL Cash Distribution Fund VI (“ACDF VI”), commenced a public offering of up to $125,000,000 of its limited partnership interests on November 23, 1994. ACDF VI terminated its offering on November 22, 1996. As of that date, $125,000,000 of offering proceeds had been received from approximately 6,401 investors. All of the proceeds were committed to equipment acquisitions, organization and offering expenses and capital reserves. ACDF VI acquired a variety of types of equipment with a total purchase cost of $208,275,158. Of such equipment, items representing an original purchase cost of $171,319,498 had been sold as of October 31, 2005.
Through September 30, 2005, ACDF VI had made cash distributions to its investors in the aggregate amount of $879.60 per $1,000 invested. Of this amount a total of $110.47 represents investment income and $769.13 represents return of capital.
The seventh prior public program, ATEL Capital Equipment Fund VII (“ACEF VII”), commenced a public offering of up to $150,000,000 of its limited partnership interests on November 29, 1996. ACEF VII terminated its offering on November 29, 1998. As of that date, $150,000,000 of offering proceeds had been received from approximately 5,386 investors. All of the proceeds were committed to equipment acquisitions, organization and offering expenses and capital reserves. ACEF VII had acquired a variety of types of equipment with a total purchase cost of $302,751,046. Of such equipment, items representing an original purchase cost of $146,352,181 had been sold as of October 31, 2005.
Through September 30, 2005, ACEF VII had made cash distributions to its investors in the aggregate amount of $731.46 per $1,000 invested. Of this amount a total of $102.79 represents investment income and $628.67 represents return of capital.
The eighth prior public program, ATEL Capital Equipment Fund VIII (“ACEF VIII”), commenced a public offering of up to $150,000,000 of its limited liability company units on December 7, 1998. ACEF VIII terminated its offering on November 30, 2000. As of that date, $135,701,380 of offering proceeds had been received from approximately 3,625 investors. All of the proceeds were committed to equipment acquisitions, organization and offering expenses and capital reserves. ACEF VIII had acquired a variety of types of equipment with a total purchase cost of $249,040,775. Of such equipment, items representing an original purchase cost of approximately $133,649,064 had been sold as of October 31, 2005.
Through September 30, 2005, ACEF VIII had made cash distributions to its investors in the aggregate amount of $585.84 per $1,000 invested. Of this amount a total of $45.96 represents investment income and $539.88 represents return of capital. See Table III — “Operating Results of Prior Programs” in this Exhibit A for further information concerning such distributions. See Table V - “Sales or Disposals of Equipment” in Exhibit A for further information concerning the equipment disposed of by ACEF VIII. See Table VI — “Acquisition of Equipment by Prior Programs” in Exhibit A for further information concerning the types of equipment acquired by ACEF VIII.
The ninth prior public program, ATEL Capital Equipment Fund IX (“ACEF IX”), commenced a public offering of up to $150,000,000 of its limited liability company units on January 16, 2001. ACEF IX terminated its offering as of January 15, 2003. As of that date, $120,652,160 of offering proceeds had been received from approximately 3,238 investors. All of the proceeds were committed to equipment acquisitions, organization and offering expenses and
Past performance is not necessarily indicative of future performance.
A-2
capital reserves. ACEF IX has acquired a variety of types of equipment with a total purchase cost of $139,602,925. Of such equipment, items representing an original purchase cost of approximately $12,279,803 had been sold as of October 31, 2005.
Through September 30, 2005, ACEF IX had made cash distributions to its investors in the aggregate amount of $384.45 per $1,000 invested. Of this amount a total of $26.04 represents investment income and $358.41 represents return of capital. See Table III — “Operating Results of Prior Programs” in this Exhibit A for further information concerning such distributions. See Table V - “Sales or Disposals of Equipment” in Exhibit A for further information concerning the equipment disposed of by ACEF IX. See Table VI — “Acquisition of Equipment by Prior Programs” in Exhibit A for further information concerning the types of equipment acquired by ACEF IX.
The tenth prior public program, ATEL Capital Equipment Fund X (“ACEF X”), commenced a public offering of up to $150,000,000 of its limited liability company units on March 12, 2003. ACEF X terminated its offering as of March 11, 2005. As of that date, $140,278,860 of offering proceeds had been received. All of the proceeds were committed to equipment acquisitions, organization and offering expenses, working capital and capital reserves. ACEF X has acquired a variety of types of equipment and invested in notes receivable with a total purchase cost of $77,647,597. Of such equipment, items representing an original purchase cost of approximately $1,317,293 had been sold as of October 31, 2005.
Through September 30, 2005, ACEF X had made cash distributions to its investors in the aggregate amount of $171.54 per $1,000 invested. All of this amount represents return of capital. See Table III — “Operating Results of Prior Programs” in this Exhibit A for further information concerning such distributions. See Table V — “Sales or Disposals of Equipment” in Exhibit A for further information concerning the equipment disposed of by ACEF X. See Table VI — “Acquisition of Equipment by Prior Programs” in Exhibit A for further information concerning the types of equipment acquired by ACEF X.
As discussed elsewhere in this Prospectus, fluctuations in demand for equipment may affect the ability of a leasing program to invest its capital in a timely manner. ACEF IX is in the process of leveraging its gross offering proceeds for the purchase of its initial equipment portfolio. ACEF X is in the process of committing the balance of its gross offering proceeds to its initial equipment portfolio. Equipment lessors have experienced a more difficult market in which to make suitable investments during the past three years of reduced growth and recession in the U.S. economy as a result of the softening demand for capital equipment during this period. Delays in investment may have a negative impact on ACEF IX and ACEF X. The Manager believes that it has identified industry segments, lease markets and potential transaction structures that will permit ACEF IX and ACEF X to fully pursue their investment objectives.
Each of the Prior Programs has had, as an investment objective, the reinvestment of cash flow after payment of debt service and certain minimum distributions. Reinvestment is intended to increase the size, diversification and return on their equipment portfolios. Adverse economic conditions during the past three years have affected the timing and terms of remarketing and re-leasing efforts by these Prior Programs. An extended remarketing cycle and lower lease rates have limited the ability of ACDF V, ACDF VI, ACEF VII and ACEF VIII to generate sufficient cash flow to permit significant reinvestment. In the future, adverse conditions in the general economy and equipment demand may also result in delays in leasing, re-leasing and disposition of equipment, and in reduced returns on invested capital. In any event, there can be no assurance as to what future developments may occur in the economy in general or in the demand for equipment and lease financing in particular.
As of October 31, 2005, the Prior Programs have acquired equipment with a total purchase cost of approximately $1.44 billion during a period of over 18 years since the date the first Prior Program commenced operations. Aggregate losses from material lessee defaults on these transactions have been approximately $7 million, or approximately 0.53% of the assets acquired, substantially less than the amount assumed by the Manager and its Affiliates in structuring these portfolios as the losses to be anticipated in the ordinary course of leasing business. There is no identifiable trend in the frequency or amount of lessee defaults experienced by prior programs.
Although certain of the Prior Programs have experienced lessee defaults in the ordinary course of business, none of the Prior Programs has experienced an unanticipated rate of default or major adverse business developments which the Fund Manager believes will impair its ability to meet its investment objectives.
Past performance is not necessarily indicative of future performance.
A-3
All of the prior public programs (the “Prior Public Programs”) have investment objectives that are similar to those of the Fund. The prior private programs, ATEL Lease Income Fund 1985-A (ALIF), ATEL Venture Fund, LLC (“AVF”), ATEL Growth Capital Fund, LLC (“AGCF”) and ATEL Growth Capital Fund II, LLC (“AGCF2”) have substantially different investment objectives than those of the Fund, so tabular information concerning these prior private programs has been omitted from this presentation.
ALIF invested in equipment without the use of any debt financing; AVF, AGCF and ACGF2 invested in portfolios with different transaction structures, including significant emphasis on finance leases, different credit criteria, targeting development stage lessees, and different investment goals, including more accelerated recovery of initial capital. The Fund and the Prior Public Programs invest in equipment with moderate amounts of leverage, acquire operating leases with equipment leased primarily to investment grade and equivalent credits, and have more emphasis on low technology, longer-lived equipment. Accordingly, only the Prior Public Programs are deemed to have investment objectives similar to those of the Fund.
The factors considered by the Manager in determining that the investment objectives of the Prior Public Programs were similar to those of the Fund include the types of equipment to be acquired, the structure of the leases to such equipment, the credit criteria for lessees, the intended investment cycles, the reinvestment policies and the investment goals of each program. Therefore all of the information set forth in Tables included in this Exhibit A — “Prior Performance Information” may be deemed to relate to programs with investment objectives similar to those of the Fund.
In Tables I through III, information is presented with respect to all Prior Programs sponsored by the Manager and its Affiliates that completed their offerings of interests within the five-year period ended September 30, 2005. Table IV includes information concerning the three Prior Programs that had completed their respective operations as of September 30, 2005. Table V includes information regarding all dispositions of equipment by Prior Programs through October 31, 2005. Table VI includes information regarding all acquisitions of equipment by Prior Programs through October 31, 2005.
The following is a list of the tables set forth in Exhibit A:
TABLE I | Experience in Raising and Investing Funds | |
TABLE II | Compensation to the General Partner/Managing Member | |
TABLE III | Operating Results of Prior Programs | |
TABLE IV | Results of Completed Programs | |
TABLE V | Sales or Disposals of Equipment by Prior Programs | |
TABLE VI | Acquisition of Equipment by Prior Programs |
ATEL will provide to any investor, upon written request and without charge, copies of the most recent Annual Reports on Form 10-K filed with the Securities and Exchange Commission by each Prior Public Program and will provide to any investor, for a reasonable fee, copies of the exhibits to such reports.
INVESTORS IN THE PARTNERSHIP WILL HAVE NO INTEREST IN THE INVESTMENTS DESCRIBED IN THE FOLLOWING TABLES. PROSPECTIVE INVESTORS SHOULD NOT CONSTRUE THE INCLUSION OF THIS INFORMATION AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE PARTNERSHIP.
Past performance is not necessarily indicative of future performance.
A-4
TABLE I
EXPERIENCE IN RAISING AND INVESTING FUNDS
(on a percentage basis)
September 30, 2005
(Unaudited)
EXPERIENCE IN RAISING AND INVESTING FUNDS
(on a percentage basis)
September 30, 2005
(Unaudited)
The following Table sets forth certain information concerning the experience of the General Partner/Managing Member in raising and investing funds. A percentage analysis of the application of the proceeds raised is presented.
ATEL Capital | ATEL Capital | ATEL Capital | ||||||||||
Equipment | Equipment | Equipment | ||||||||||
Fund VIII | Fund IX | Fund X | ||||||||||
EQUITY PROCEEDS | ||||||||||||
Dollar amount of equity offered | $ | 150,000,000 | $ | 150,000,000 | $ | 150,000,000 | ||||||
Dollar amount of equity raised | $ | 135,701,380 | $ | 120,652,160 | $ | 140,278,860 | (6) | |||||
Less: Offering expenses: | ||||||||||||
Selling commissions | 9.50 | % | 9.50 | % | 9.00 | % | ||||||
Organization and program expenses (1) | 4.68 | % | 4.51 | % | 3.71 | % | ||||||
Reserves | 0.50 | % | 0.50 | % | 0.50 | % | ||||||
Percent available for investment | 85.32 | % | 85.49 | % | 86.79 | % | ||||||
Acquisition costs: | ||||||||||||
Purchase price (2) | 85.32 | % | 85.49 | % | 86.79 | % | ||||||
Acquisition fees | — | — | — | |||||||||
85.32 | % | 85.49 | % | 86.79 | % | |||||||
Percent leverage (3) | 53.13 | % | 21.41 | % | 0.00 | % | ||||||
Date offering commenced: | Dec. 7, 1998 | Jan. 16, 2001 | Mar. 12, 2003 | |||||||||
Length of offering | 24 Months | 24 Months | 24 Months | |||||||||
Months to invest 90% of amount available for investment (measured from beginning of offering) | 24 Months (4) | 30 Months (5) | 30 Months (6) |
FOOTNOTES:
(1) | Includes organization, legal, accounting, printing, binding, delivery and other costs incurred by the General Partner/Managing Member. | |
(2) | Represents amounts paid to unrelated third parties for purchase of equipment under leases. | |
(3) | The percentage leverage is calculated by dividing the initial principal amount of debt incurred by the program through the date of this table by the aggregate original cost of all equipment purchased by the program through such date. It should be noted, however, that each program has acquired assets, has made or will make principal amortizing debt service payments and/or has disposed or will dispose of assets over a period of time extending from its first investment in equipment. As a result, for each program the total cost of the assets in its portfolio and the total principal amount of debt outstanding have fluctuated from time to time. The percentage figure, therefore, does not reflect the current leverage ratio or the debt ratio at any one point in time, but constitutes an aggregate ratio for the life of the program through the date of the table. | |
(4) | As of November 30, 2000, the Fund’s offering of Limited Liability Company Units was completed. As of that date, the proceeds of the offering had been fully committed. | |
(5) | As of January 15, 2003, the Fund’s offering of Limited Liability Company Units was completed. As of September 30, 2003, the proceeds of the offering had been fully committed. | |
(6) | As of March 11, 2005, the Funds offering of Limited Liability Company Units was completed. As of October 31, 2005 the proceeds of the offering had been fully committed. |
Past performance is not necessarily indicative of future performance.
A-5
TABLE II
COMPENSATION TO THE GENERAL PARTNER/MANAGING MEMBER
September 30, 2005
(Unaudited)
COMPENSATION TO THE GENERAL PARTNER/MANAGING MEMBER
September 30, 2005
(Unaudited)
The following Table sets forth certain information concerning the compensation derived by the General Partner/Managing Member. Amounts paid are from two sources: proceeds of the offering and gross revenues.
ATEL Capital | ATEL Capital | ATEL Capital | ||||||||||||||
Equipment | Equipment | Equipment | ||||||||||||||
Fund VIII | Fund IX | Fund X | ||||||||||||||
Date offering commenced | Dec. 7, 1998 | Jan. 16, 2001 | Mar. 12, 2003 | |||||||||||||
Date offering closed | Nov. 30, 2000 | Jan. 15, 2003 | Mar. 11, 2005 | |||||||||||||
Dollar amount raised | $ | 135,701,380 | $ | 120,652,160 | $ | 140,278,860 | ||||||||||
Amounts paid to General Partner / Managing Member from proceeds of offering: | ||||||||||||||||
Acquisition fees / Reimbursements of initial direct costs | $ | 2,591,088 | $ | 5,476,105 | $ | 3,354,064 | ||||||||||
Selling commissions | $ | 12,891,631 | $ | 11,461,955 | $ | 12,625,097 | ||||||||||
Organization and program costs | $ | 6,354,458 | $ | 5,441,795 | $ | 5,198,599 | ||||||||||
Dollar amount of cumulative cash generated from operations before deducting payments to the General Partner/Managing Member | $ | 129,237,984 | $ | 43,704,775 | $ | 11,960,040 | ||||||||||
Cumulative amount paid to the General Partner/Managing Member from operations: | ||||||||||||||||
Management fees | $ | 8,261,655 | $ | 2,469,461 | $ | 684,004 | ||||||||||
Reimbursement of payroll costs | $ | 4,647,401 | $ | 1,976,280 | $ | 663,395 | ||||||||||
Other operating expenses | $ | 769,758 | $ | 704,065 | $ | 294,377 | ||||||||||
Aggregate payments to General Partner / Managing Member:(1) | ||||||||||||||||
1999 | $ | 13,056,922 | ||||||||||||||
2000 | 11,872,250 | |||||||||||||||
2001 | 2,921,431 | $ | 7,131,876 | |||||||||||||
2002 | 2,351,555 | 10,270,777 | ||||||||||||||
2003 | 2,337,830 | 4,115,416 | $ | 7,715,713 | ||||||||||||
2004 | 1,809,516 | 2,740,037 | 10,154,289 | |||||||||||||
2005 | 1,166,487 | 3,271,555 | 4,949,534 | |||||||||||||
$ | 35,515,991 | $ | 27,529,661 | $ | 22,819,536 | |||||||||||
FOOTNOTES:
(1) | As of September 30, 2005. Includes payments of management fees, reimbursements of syndication costs to General Partner/Managing Member (and affiliates), acquisition fees, initial direct costs on leases and reimbursements of administrative costs. |
Past performance is not necessarily indicative of future performance.
A-6
TABLE III
OPERATING RESULTS OF PRIOR PROGRAMS
September 30, 2005
(Unaudited)
OPERATING RESULTS OF PRIOR PROGRAMS
September 30, 2005
(Unaudited)
The following Table summarizes the operating results of Prior Programs ( ACEF VIII, ACEF IX and ACEF X). The Prior Programs’ records are maintained in accordance with generally accepted accounting principles for financial statement purposes.
ATEL Capital Equipment Fund VIII | ||||||||||||
Period Ended | ||||||||||||
December 31, | ||||||||||||
1999 | 2000 | 2001 | ||||||||||
Months of operations | 12 | 12 | 12 | |||||||||
Gross revenue — lease and other | $ | 8,657,636 | $ | 31,046,332 | $ | 41,992,805 | ||||||
— gain (loss) on sales of assets | 3,017 | 1,453 | 1,801,292 | |||||||||
8,660,653 | 31,047,785 | 43,794,097 | ||||||||||
Less Operating Expenses: (1) | ||||||||||||
Depreciation and amortization expense | 5,481,955 | 22,703,913 | 31,555,851 | |||||||||
Provision for losses and doubtful accounts | — | — | 82,615 | |||||||||
Interest expense | 1,340,804 | 7,365,041 | 9,058,622 | |||||||||
Administrative costs and reimbursements | 243,774 | 1,261,054 | 749,754 | |||||||||
Legal/Professional fees | 155,743 | 127,345 | 215,450 | |||||||||
Other | 121,438 | 398,365 | 287,382 | |||||||||
Management fee | 443,943 | 1,465,566 | 1,849,335 | |||||||||
7,787,657 | 33,321,284 | 43,799,009 | ||||||||||
Net income (loss) — GAAP basis | $ | 872,996 | $ | (2,273,499 | ) | $ | (4,912 | ) | ||||
Taxable income (loss) from operations | $ | (13,620,427 | ) | $ | (29,018,361 | ) | $ | (15,498,538 | ) | |||
Cash generated by (used in) operations (2) | $ | 5,743,245 | $ | 18,412,107 | $ | 30,662,797 | ||||||
Cash generated from sales | 38,178 | 7,761 | 7,348,063 | |||||||||
Cash generated from refinancing | — | |||||||||||
Cash generated from other (2) | 951,549 | 2,154,474 | 2,806,236 | |||||||||
6,732,972 | 20,574,342 | 40,817,096 | ||||||||||
Less cash distributions to investors: | ||||||||||||
From operating cash flow | 2,460,684 | 9,795,386 | 12,403,683 | |||||||||
From sales | — | — | — | |||||||||
From refinancing | — | — | — | |||||||||
From other | — | — | — | |||||||||
Total distributions | 2,460,684 | 9,795,386 | 12,403,683 | |||||||||
Cash generated (deficiency) after cash distributions | $ | 4,272,288 | $ | 10,778,956 | $ | 28,413,413 | ||||||
Tax and distribution data per $1,000 limited partner investment: | ||||||||||||
Federal Income Tax Results: | ||||||||||||
Ordinary income (loss): | ||||||||||||
Operations | $ | (312.53 | ) | $ | (252.40 | ) | $ | (105.64 | ) | |||
Recapture | ||||||||||||
Capital gain (loss) | ||||||||||||
Cash distributions to investors on a GAAP basis: | ||||||||||||
— Investment income | $ | 16.73 | $ | — | $ | — | ||||||
— Return of capital | 44.40 | 92.11 | 91.40 | |||||||||
$ | 61.13 | $ | 92.11 | $ | 91.40 | |||||||
Sources (on a cash basis) | ||||||||||||
Sales | $ | — | $ | — | $ | — | ||||||
Refinancing | — | — | — | |||||||||
Operations | 61.13 | 92.11 | 91.40 | |||||||||
Other | — | — | — | |||||||||
Total | $ | 61.13 | $ | 92.11 | $ | 91.40 | ||||||
Amount invested in program equipment (cost, excluding acquisition fees) | $ | 142,755,301 | $ | 218,029,699 | $ | 237,646,671 | ||||||
Amount invested in program equipment (book value) | $ | 139,420,208 | $ | 190,893,298 | $ | 178,999,739 | ||||||
Amount remaining invested in program equipment (Cost of equipment owned at end of period as a percentage of cost of all equipment purchased by the program) (3) | 57.32 | % | 87.55 | % | 95.42 | % |
Past performance is not necessarily indicative of future performance.
A-7
TABLE III
OPERATING RESULTS OF PRIOR PROGRAMS
September 30, 2005
(Unaudited)
OPERATING RESULTS OF PRIOR PROGRAMS
September 30, 2005
(Unaudited)
ATEL Capital Equipment Fund VIII
Period Ended December 31, | September 30, | |||||||||||||||
2002 | 2003 | 2004 | 2005 | |||||||||||||
Months of operations | 12 | 12 | 12 | 9 | ||||||||||||
Gross revenue — lease and other | $ | 32,511,431 | $ | 28,100,765 | $ | 19,405,309 | $ | 9,329,228 | ||||||||
— gain (loss) on sales of assets | 271,751 | 595,299 | 8,675,502 | 565,207 | ||||||||||||
32,783,182 | 28,696,064 | 28,080,811 | 9,894,435 | |||||||||||||
Less Operating Expenses: (1) | ||||||||||||||||
Depreciation and amortization expense | 23,335,058 | 21,118,055 | 15,180,856 | 7,499,613 | ||||||||||||
Provision for losses and doubtful accounts | 2,877,500 | 5,709,271 | 913,312 | 98,900 | ||||||||||||
Interest expense | 6,888,109 | 4,531,325 | 3,467,624 | 1,053,620 | ||||||||||||
Administrative costs and reimbursements | 869,979 | 820,571 | 752,161 | 719,866 | ||||||||||||
Legal/Professional fees | 179,562 | 506,698 | 243,438 | 133,370 | ||||||||||||
Other | 843,035 | 1,761,696 | 1,499,185 | 357,163 | ||||||||||||
Management fee | 1,481,576 | 1,517,259 | 1,057,355 | 446,621 | ||||||||||||
36,474,819 | 35,964,875 | 23,113,931 | 10,309,153 | |||||||||||||
Net income (loss) — GAAP basis | $ | (3,691,637 | ) | $ | (7,268,811 | ) | $ | 4,966,880 | $ | (414,718 | ) | |||||
Taxable income (loss) from operations | $ | (12,212,767 | ) | $ | (9,525,065 | ) | $ | 27,313,706 | $ | 4,183,245 | (4) | |||||
Cash generated by (used in) operations (2) | $ | 23,767,986 | $ | 18,993,036 | $ | 12,264,913 | $ | 5,715,086 | ||||||||
Cash generated from sales | 2,403,934 | 13,964,820 | 38,125,051 | 7,621,030 | ||||||||||||
Cash generated from refinancing | — | 2,563,149 | — | — | ||||||||||||
Cash generated from other (2) | 2,134,026 | 1,793,351 | 1,843,290 | 808,653 | ||||||||||||
28,305,946 | 37,314,356 | 52,233,254 | 14,144,769 | |||||||||||||
Less cash distributions to investors: | ||||||||||||||||
From operating cash flow | 12,347,756 | 12,345,603 | 12,264,913 | 5,715,086 | ||||||||||||
From sales | — | — | — | 2,736,505 | ||||||||||||
From refinancing | — | — | — | — | ||||||||||||
From other | — | — | 82,470 | 808,653 | ||||||||||||
Total distributions | 12,347,756 | 12,345,603 | 12,347,383 | 9,260,244 | ||||||||||||
Cash generated (deficiency) after cash distributions | $ | 15,958,190 | $ | 24,968,753 | $ | 39,885,871 | $ | 4,884,525 | ||||||||
Tax and distribution data per $1,000 limited partner investment: | ||||||||||||||||
Federal Income Tax Results: | ||||||||||||||||
Ordinary income (loss): | ||||||||||||||||
Operations | $ | (83.25 | ) | $ | (64.93 | ) | $ | 186.18 | $ | 28.51 | ||||||
Recapture | ||||||||||||||||
Capital gain (loss) | ||||||||||||||||
Cash distributions to investors on a GAAP basis: | ||||||||||||||||
— Investment income | $ | — | $ | — | $ | 29.22 | $ | — | ||||||||
— Return of capital | 90.99 | 90.98 | 61.77 | 68.24 | ||||||||||||
$ | 90.99 | $ | 90.98 | $ | 90.99 | $ | 68.24 | |||||||||
Sources (on a cash basis) | ||||||||||||||||
Sales | $ | — | $ | — | $ | — | $ | 20.17 | ||||||||
Refinancing | — | — | — | — | ||||||||||||
Operations | 90.99 | 90.98 | 90.38 | 42.12 | ||||||||||||
Other | — | — | 0.61 | 5.95 | ||||||||||||
Total | $ | 90.99 | $ | 90.98 | $ | 90.99 | $ | 68.24 | ||||||||
Amount invested in program equipment (cost, excluding acquisition fees) | $ | 232,355,732 | $ | 210,621,824 | $ | 140,662,540 | $ | 115,391,711 | ||||||||
Amount invested in program equipment (book value) | $ | 149,219,222 | $ | 107,259,024 | $ | 59,699,017 | $ | 44,742,208 | ||||||||
Amount remaining invested in program equipment (Cost of equipment owned at end of period as a percentage of cost of all equipment purchased by the program) (3) | 93.30 | % | 85.71 | % | 56.48 | % | 46.33 | % |
Past performance is not necessarily indicative of future performance.
A-8
TABLE III
OPERATING RESULTS OF PRIOR PROGRAMS
September 30, 2005
(Unaudited)
OPERATING RESULTS OF PRIOR PROGRAMS
September 30, 2005
(Unaudited)
ATEL Capital Equipment Fund IX | ||||||||||||
Period Ended December 31, | ||||||||||||
2001 | 2002 | 2003 | ||||||||||
Months of operations | 12 | 12 | 12 | |||||||||
Gross revenue — lease and other | $ | 3,393,685 | $ | 6,966,142 | $ | 10,872,695 | ||||||
— gain (loss) on sales of assets | — | 107,353 | 658,865 | |||||||||
3,393,685 | 7,073,495 | 11,531,560 | ||||||||||
Less Operating Expenses: (1) | ||||||||||||
Depreciation and amortization expense | 2,092,145 | 5,191,882 | 8,143,595 | |||||||||
Acquisition expense | (116,654 | ) | 610,751 | 1,008,112 | ||||||||
Provision for losses and doubtful accounts | — | — | 496,347 | |||||||||
Interest expense | 199,230 | 336,696 | 349,319 | |||||||||
Administrative costs and reimbursements | 374,507 | 343,120 | 627,320 | |||||||||
Legal/Professional fees | 39,384 | 99,730 | 106,167 | |||||||||
Other | 34,152 | 332,390 | 405,671 | |||||||||
Management fee | 83,341 | 264,322 | 686,013 | |||||||||
2,706,105 | 7,178,891 | 11,822,544 | ||||||||||
Net income (loss) — GAAP basis | $ | 687,580 | $ | (105,396 | ) | $ | (290,984 | ) | ||||
Taxable income (loss) from operations | $ | 107,619 | $ | (3,947,950 | ) | $ | (4,526,988 | ) | ||||
Cash generated by (used in) operations (2) | $ | 1,744,270 | $ | 5,187,729 | $ | 7,960,244 | ||||||
Cash generated from sales | — | 749,408 | 5,370,886 | |||||||||
Cash generated from refinancing | — | — | — | |||||||||
Cash generated from other (2) | 673,907 | 1,178,949 | 1,436,942 | |||||||||
2,418,177 | 7,116,086 | 14,768,072 | ||||||||||
Less cash distributions to investors: | ||||||||||||
From operating cash flow | 1,213,341 | 5,187,729 | 3,825,258 | |||||||||
From sales | — | 749,408 | 5,370,886 | |||||||||
From refinancing | — | — | — | |||||||||
From other | — | 78,490 | 1,436,942 | |||||||||
Total distributions | 1,213,341 | 6,015,627 | 10,633,086 | |||||||||
Cash generated (deficiency) after cash distributions | $ | 1,204,836 | $ | 1,100,459 | $ | 4,134,986 | ||||||
Tax and distribution data per $1,000 limited partner investment: | ||||||||||||
Federal Income Tax Results: | ||||||||||||
Ordinary income (loss): | ||||||||||||
Operations | $ | 4.59 | $ | (50.16 | ) | $ | (34.79 | ) | ||||
Recapture | ||||||||||||
Capital gain (loss) | ||||||||||||
Cash distributions to investors on a GAAP basis: | ||||||||||||
— Investment income | $ | 27.19 | $ | — | $ | — | ||||||
— Return of capital | 28.80 | 82.63 | 88.35 | |||||||||
$ | 55.99 | $ | 82.63 | $ | 88.35 | |||||||
Sources (on a cash basis) | ||||||||||||
Sales | $ | — | $ | 10.29 | $ | 44.63 | ||||||
Refinancing | — | — | — | |||||||||
Operations | 55.99 | 71.26 | 31.78 | |||||||||
Other | — | 1.08 | 11.94 | |||||||||
Total | $ | 55.99 | $ | 82.63 | $ | 88.35 | ||||||
Amount invested in program equipment (cost, excluding acquisition fees) | $ | 22,844,529 | $ | 49,667,555 | $ | 64,762,921 | ||||||
Amount invested in program equipment (book value) | $ | 21,243,995 | $ | 46,798,202 | $ | 50,942,254 | ||||||
Amount remaining invested in program equipment (Cost of equipment owned at end of period as a percentage of cost of all equipment purchased by the program) (3) | 16.36 | % | 35.58 | % | 93.20 | % |
Past performance is not necessarily indicative of future performance.
A-9
TABLE III
OPERATING RESULTS OF PRIOR PROGRAMS
September 30, 2005
(Unaudited)
OPERATING RESULTS OF PRIOR PROGRAMS
September 30, 2005
(Unaudited)
ATEL Capital Equipment Fund IX | |||||||||
Period Ended | |||||||||
December 31, | September 30, | ||||||||
2004 | 2005 | ||||||||
Months of operations | 12 | 9 | |||||||
Gross revenue — lease and other | $ | 12,757,613 | $ | 15,514,090 | |||||
— gain (loss) on sales of assets | (30,313 | ) | 133,607 | ||||||
12,727,300 | 15,647,697 | ||||||||
Less Operating Expenses: (1) | |||||||||
Depreciation and amortization expense | 9,845,205 | 11,928,027 | |||||||
Acquisition expense | 713,822 | 460,706 | |||||||
Provision for losses and doubtful accounts | 293,868 | (13,771 | ) | ||||||
Interest expense | 533,934 | 1,154,864 | |||||||
Administrative costs and reimbursements | 680,045 | 655,353 | |||||||
Legal/Professional fees | 250,481 | 194,627 | |||||||
Other | 401,498 | 146,897 | |||||||
Management fee | 620,104 | 815,681 | |||||||
13,338,957 | 15,342,384 | ||||||||
Net income (loss) — GAAP basis | $ | (611,657 | ) | $ | 305,313 | ||||
Taxable income (loss) from operations | $ | (5,577,422 | ) | $ | 969,591 | (4) | |||
Cash generated by (used in) operations (2) | $ | 8,906,143 | $ | 14,756,583 | |||||
Cash generated from sales | 95,571 | 695,070 | |||||||
Cash generated from refinancing | — | ||||||||
Cash generated from other (2) | 3,078,609 | 3,437,393 | |||||||
12,080,323 | 18,889,046 | ||||||||
Less cash distributions to investors: | |||||||||
From operating cash flow | 8,906,143 | 8,139,476 | |||||||
From sales | 95,571 | — | |||||||
From refinancing | — | — | |||||||
From other | 1,852,221 | — | |||||||
Total distributions | 10,853,935 | 8,139,476 | |||||||
Cash generated (deficiency) after cash distributions | $ | 1,226,388 | $ | 10,749,570 | |||||
Tax and distribution data per $1,000 limited partner investment: | |||||||||
Federal Income Tax Results: | |||||||||
Ordinary income (loss): | |||||||||
Operations | $ | (42.77 | ) | $ | 7.44 | ||||
Recapture | |||||||||
Capital gain (loss) | |||||||||
Cash distributions to investors on a GAAP basis: | |||||||||
— Investment income | $ | — | $ | — | |||||
— Return of capital | 89.98 | 33.23 | |||||||
$ | 89.98 | $ | 67.50 | ||||||
Sources (on a cash basis) | |||||||||
Sales | $ | .79 | $ | 5.76 | |||||
Refinancing | — | — | |||||||
Operations | 73.83 | 33.23 | |||||||
Other | 15.36 | 28.51 | |||||||
Total | $ | 89.98 | $ | 67.50 | |||||
Amount invested in program equipment (cost, excluding acquisition fees) | $ | 99,523,409 | $ | 127,323,122 | |||||
Amount invested in program equipment (book value) | $ | 86,689,450 | $ | 88,813,653 | |||||
Amount remaining invested in program equipment (Cost of equipment owned at end of period as a percentage of cost of all equipment purchased by the program) (3) | 77.26 | % | 91.20 | % |
Past performance is not necessarily indicative of future performance.
A-10
TABLE III
OPERATING RESULTS OF PRIOR PROGRAMS
September 30, 2005
(Unaudited)
OPERATING RESULTS OF PRIOR PROGRAMS
September 30, 2005
(Unaudited)
ATEL Capital Equipment Fund X | ||||||||||||
Period Ended December 31, | September 30, | |||||||||||
2003 | 2004 | 2005 | ||||||||||
Months of operations | 12 | 12 | 3 | |||||||||
Gross revenue — lease and other | $ | 896,923 | $ | 4,969,654 | $ | 8,180,801 | ||||||
— gain (loss) on sales of assets | 10,991 | — | 39,059 | |||||||||
907,914 | 4,969,654 | 8,219,860 | ||||||||||
Less Operating Expenses: (1) | ||||||||||||
Depreciation and amortization expense | 814,426 | 3,704,572 | 5,479,238 | |||||||||
Acquisition expense | 891,919 | 597,755 | 928,772 | |||||||||
Provision for losses and doubtful accounts | — | — | — | |||||||||
Interest expense | — | — | — | |||||||||
Administrative costs and reimbursements | 48,235 | 356,797 | 552,740 | |||||||||
Legal/Professional fees | 33,563 | 106,093 | 65,655 | |||||||||
Other | 143,876 | 252,620 | 317,141 | |||||||||
Management fee | 48,550 | 211,761 | 423,693 | |||||||||
1,980,569 | 5,229,598 | 7,767,239 | ||||||||||
Net income (loss) — GAAP basis | $ | (1,072,655 | ) | $ | (259,944 | ) | $ | 452,621 | ||||
Taxable income (loss) from operations | $ | (831,185 | ) | $ | (5,025,157 | ) | $ | (2,900,766 | )(4) | |||
Cash generated by (used in) operations (2) | $ | 346,054 | $ | 2,563,375 | $ | 7,408,835 | ||||||
Cash generated from sales | 257,206 | — | 627,087 | |||||||||
Cash generated from refinancing | — | — | ||||||||||
Cash generated from other (2) | 98,028 | 1,010,471 | 1,446,693 | |||||||||
701,288 | 3,573,846 | 9,482,615 | ||||||||||
Less cash distributions to investors: | ||||||||||||
From operating cash flow | 346,054 | 2,563,375 | 7,408,835 | |||||||||
From sales | 257,206 | — | ||||||||||
From refinancing | — | — | ||||||||||
From other | 334,236 | 3,111,872 | 442,401 | |||||||||
Total distributions | 937,496 | 5,675,247 | 7,851,236 | |||||||||
Cash generated (deficiency) after cash distributions | $ | (236,208 | ) | $ | (2,101,401 | ) | $ | 1,631,379 | ||||
Tax and distribution data per $1,000 limited partner investment: | ||||||||||||
Federal Income Tax Results: | ||||||||||||
Ordinary income (loss): | ||||||||||||
Operations | $ | (34.48 | ) | $ | (58.74 | ) | $ | (19.75 | ) | |||
Recapture | ||||||||||||
Capital gain (loss) | ||||||||||||
Cash distributions to investors on a GAAP basis: | ||||||||||||
— Investment income | $ | — | $ | — | $ | — | ||||||
— Return of capital | 42.04 | 71.71 | 57.79 | |||||||||
$ | 42.04 | $ | 71.71 | $ | 57.79 | |||||||
Sources (on a cash basis) | ||||||||||||
Sales | $ | 11.53 | $ | — | $ | — | ||||||
Refinancing | — | — | — | |||||||||
Operations | 15.52 | 32.39 | 54.53 | |||||||||
Other | 14.99 | 39.32 | 3.26 | |||||||||
Total | $ | 42.04 | $ | 71.71 | $ | 57.79 | ||||||
Amount invested in program equipment (cost, excluding acquisition fees) | $ | 14,602,123 | $ | 45,702,514 | $ | 76,330,305 | ||||||
Amount invested in program equipment (book value) | $ | 13,884,038 | $ | 42,591,667 | $ | 64,923,711 | ||||||
Amount remaining invested in program equipment (Cost of equipment owned at end of period as a percentage cost of all equipment purchased by the program) (3) | 98.38 | % | 79.33 | % | 98.30 | % |
Past performance is not necessarily indicative of future performance.
A-11
FOOTNOTES:
(1) | Operating expenses include reimbursements to the General Partner/Managing Member as follows: |
ATEL Capital | ATEL Capital | ATEL Capital | ||||||||||
Equipment | Equipment | Equipment | ||||||||||
Fund VIII | Fund IX | Fund X | ||||||||||
Year ended December 31, 1999 | $ | 243,774 | ||||||||||
2000 | 1,261,054 | |||||||||||
2001 | 749,754 | $ | 374,507 | |||||||||
2002 | 869,979 | 343,120 | ||||||||||
2003 | 820,571 | 627,320 | $ | 48,235 | ||||||||
2004 | 752,161 | 680,045 | 356,797 | |||||||||
2005 | 719,866 | 655,353 | 552,740 | |||||||||
$ | 5,417,159 | $ | 2,680,345 | $ | 957,772 | |||||||
(2) | Cash generated by (used in) operations does not include the principal portion of lease rentals received under direct financing leases or principal payments received on notes receivable. In the Funds’ statements of cash flows (under generally accepted accounting principles), these amounts are included in the investing activities section. | |
(3) | The percentage is calculated as a fraction, the numerator of which is the amount invested in program equipment (at cost) as of the end of the indicated period and the denominator of which is the cumulative total of the cost of all equipment acquired by the program through the end of the latest period shown. | |
(4) | Estimated as of September 30, 2005. |
Past performance is not necessarily indicative of future performance.
A-12
TABLE IV
RESULTS OF COMPLETED PROGRAMS
September 30, 2005
(Unaudited)
RESULTS OF COMPLETED PROGRAMS
September 30, 2005
(Unaudited)
ATEL Cash | ATEL Cash | ATEL Cash | ATEL Cash | |||||||||||||
Program name: | Distribution Fund | Distribution Fund II | Distribution Fund III | Distribution Fund IV | ||||||||||||
Dollar amount of equity raised | $ | 10,000,000 | $ | 35,000,000 | $ | 73,855,840 | $ | 75,000,000 | ||||||||
Assets purchased | $ | 11,133,679 | $ | 52,270,536 | $ | 99,629,942 | $ | 108,734,880 | ||||||||
Date of Closing of Offering | December 18, 1987 | January 3, 1990 | January 3, 1992 | February 3, 1993 | ||||||||||||
Date of first sale of property | May 1, 1989 | July 1, 1994 | December 1, 1992 | August 1, 1993 | ||||||||||||
Date of final sale of property | December 31, 1997 | December 31, 1998 | December 31, 2000 | December 31, 2004 | ||||||||||||
Tax and distribution data per $1,000 limited partner investment through December 31, 2004: | ||||||||||||||||
Federal Income Tax Results: | ||||||||||||||||
Ordinary income (loss): | ||||||||||||||||
Operations | $ | 192.40 | $ | 154.95 | $ | (12.08 | ) | $ | 291.74 | |||||||
Recapture | ||||||||||||||||
Capital gain (loss) | ||||||||||||||||
Cash distributions to investors on a GAAP basis: | ||||||||||||||||
— Investment income | $ | 244.89 | $ | 335.43 | $ | 379.10 | $ | 336.19 | ||||||||
— Return of capital | 876.14 | 887.20 | 950.66 | 910.30 | ||||||||||||
1,121.03 | 1,222.63 | 1,329.76 | 1,246.49 | |||||||||||||
Cash available for distribution, reinvested for investors’ accounts | 89.05 | 48.75 | — | — | ||||||||||||
Total | $ | 1,210.08 | $ | 1,271.38 | $ | 1,329.76 | $ | 1,246.49 | ||||||||
Sources (on a cash basis): | ||||||||||||||||
Sales | $ | 136.03 | $ | 159.92 | $ | 169.34 | $ | 269.83 | ||||||||
Refinancing | — | — | — | — | ||||||||||||
Operations | 969.59 | 987.33 | 975.75 | 711.09 | ||||||||||||
Other | 104.46 | 124.13 | 184.67 | 265.57 | ||||||||||||
Total | $ | 1,210.08 | $ | 1,271.38 | $ | 1,329.76 | $ | 1,246.49 | ||||||||
Past performance is not necessarily indicative of future performance.
A-13
TABLE V
SALES OR DISPOSALS OF EQUIPMENT BY PRIOR PROGRAMS
ATEL Capital Equipment Fund VIII, ATEL Capital Equipment Fund IX and ATEL Capital Equipment Fund X have disposed of equipment in their portfolios as of October 31, 2005. Set forth below is a summary of equipment sales and dispositions as of such date. Sales were for consideration unless otherwise noted. Interim rent (rent paid prior to formal commencement of a lease), hold-over rent (rent received after termination of the initial lease term, but before formal extension or disposition) and extension rent (rent paid after formal extension of a lease) are included in the “Excess of Rents Over Expenses” column. “Equipment Acquisition Price” includes acquisition fees. Dispositions are shown on a per asset basis.
Excess of | ||||||||||||||||||
Equipment | Rents Over | |||||||||||||||||
Acquisition | Acquisition | Sale | Expenses | |||||||||||||||
Lessee | Type of Equipment | Date (1) | Price (2) | Sale Date | Price (3) | (4) | ||||||||||||
ATEL CAPITAL EQUIPMENT FUND VIII | ||||||||||||||||||
Burlington Northern & Santa Fe | Locomotives | Nov-99 | $ | 587,500 | Mar-03 | $ | 483,653 | $ | 221,406 | |||||||||
Burlington Northern & Santa Fe | Railroad | Sep-99 to Nov-99 | 1,634,002 | Nov-03 to Dec-03 | 154,700 | 1,346,436 | ||||||||||||
Burlington Northern & Santa Fe | Railroad | Sep-99 | 107,737 | Jan-04 to Mar-04 | 15,380 | 88,776 | ||||||||||||
BJ’s Wholesale Club, Inc. | Material Handling | Feb-99 | 594,748 | Dec-04 | 90,640 | 549,440 | ||||||||||||
Celestica Corporation | Manufacturing | Dec-00 | 1,573,285 | Jul-03 | 491,000 | 1,224,300 | ||||||||||||
Celestica Corporation | Manufacturing | Dec-00 | 1,324,384 | Feb-04 to Apr-04 | 121,500 | 1,489,474 | ||||||||||||
Consolidated Diesel Company | Telecommunications | Feb-99 | 406,030 | Dec-04 | 11,460 | 376,749 | ||||||||||||
Consolidated Rail Corporation | Railroad | Dec-99 | 25,848 | Aug-05 | 14,165 | 15,500 | ||||||||||||
CSX Transportation, Inc. | Box Cars | Sep-99 | 6,782,075 | Jan-01 | 7,112,100 | 1,749,525 | ||||||||||||
CVS Pharmacy, Inc. | Office Automation | Dec-99 | 106,156 | Feb-02 | 23,850 | 103,907 | ||||||||||||
CVS Pharmacy, Inc. | Material Handling | Feb-01 | 20,250 | Jul-03 | 20,250 | 10,137 | ||||||||||||
CVS Pharmacy, Inc. | Computers | Aug-00 to Feb-01 | 959,538 | May-03 | 166,999 | 982,759 | ||||||||||||
CVS Pharmacy, Inc. | Telecommunications | Dec-99 to Mar-01 | 1,870,903 | Aug-04 | 386,602 | 1,978,865 | ||||||||||||
CVS Pharmacy, Inc. | Office Automation | Jul-99 to Mar-00 | 150,925 | Oct-01 | 23,700 | 64,466 | ||||||||||||
CVS Pharmacy, Inc. | Material Handling | Jul-99 to Mar-01 | 4,471,590 | Aug-04 | 1,424,785 | 4,499,736 | ||||||||||||
CVS Pharmacy, Inc. | Food Processing | Mar-00 to Aug-00 | 68,680 | Aug-04 | 15,736 | 68,700 | ||||||||||||
DDB Needham Chicago Inc. | Electronics | Sep-98 | 43,589 | Oct-02 | 13,462 | 40,829 | ||||||||||||
DDB Needham Chicago Inc. | Office Automation Equip. | Sep-98 | 41,294 | Feb-03 | 445 | 54,150 | ||||||||||||
Emery Worldwide Airlines | Cargo Plane | Jun-00 | 14,123,602 | Apr-03 | 3,980,000 | 9,419,761 | ||||||||||||
Emery Worldwide Airlines | Aviation | Nov-99 | 5,725,300 | Apr-05 | 500,000 | 2,741,562 | ||||||||||||
Firstunion-Archer Daniels Midland | Railroad | Dec-99 | 20,151 | Dec-03 | 20,725 | 8,419 | ||||||||||||
Firstunion-Pacific Railroad | Railroad | Dec-99 | 20,151 | May-05 | 20,275 | 9,871 | ||||||||||||
GE Aircraft Engines | Tilt Axis Table | Mar-00 | 31,130 | Apr-01 | 31,130 | 5,054 | ||||||||||||
GE Aircraft Engines | Material Handling | Aug-00 | 128,976 | Aug-04 to Sep-04 | 51,329 | 120,357 | ||||||||||||
GE Aircraft Engines | Manufacturing | Jul-00 to Jan-01 | 1,085,135 | Jun-03 | 904,522 | 470,714 | ||||||||||||
GE Aircraft Engines | Manufacturing | Mar-99 to Aug-01 | 20,793,207 | Aug-04 | 13,529,850 | 21,465,878 | ||||||||||||
GE Aircraft Engines | Manufacturing | Nov-99 to Mar-00 | 61,960 | Jun-05 | 5,000 | 66,318 | ||||||||||||
Great American Management Services | Boxcars | Oct-99 | 203,250 | Apr-03 | 106,877 | 69,854 | ||||||||||||
Great American Management Services | Pullman Box Car | Oct-99 | 15,635 | Nov-99 | 15,780 | — | ||||||||||||
Hallsmith-Sysco Food Services | Trucks And Trailers | Aug-99 | 64,906 | Jul-03 | 46,141 | 64,906 | ||||||||||||
Hallsmith-Sysco Food Services | Trucks And Trailers | Sep-00 | 70,914 | Nov-03 | 54,033 | 35,342 | ||||||||||||
Hanover Compression L.P. | Photo Processing Equipment | Jan-99 to Oct-99 | 10,781,578 | May-05 | 6,555,101 | 9,617,910 | ||||||||||||
IMC Phosphates Company | Storage Facility | Jun-00 | 6,712,090 | Jun-04 | 6,800,000 | 1,035,726 | ||||||||||||
Kansas City Southern Railway | Railroad | Dec-99 | 40,302 | Jun-04 | 39,358 | 29,290 | ||||||||||||
Kansas City Southern Railway | Covered Hopper Railcars | Dec-99 | 40,302 | Jul-03 | 42,322 | 20,719 | ||||||||||||
Kansas City Southern Railway | Railroad | Dec-99 | 60,453 | Mar-05 to Sep- | 56,206 | 32,957 | ||||||||||||
Lafarge North America | Material Handling | Jul-00 to Jan-01 | 1,469,117 | Mar-04 to Jul-04 | 428,000 | 1,198,221 | ||||||||||||
Lafarge North America | Construction | Nov-00 | 317,111 | Dec-04 | 197,624 | 229,736 | ||||||||||||
Montreal, Maine & Atlantic | Railroad | Oct-99 | 3,408,338 | Dec-04 | 4,614,760 | 1,710,760 | ||||||||||||
National Steel Corporation | Construction | Nov-99 | 1,135,900 | Jan-04 | 400,000 | 1,110,654 | ||||||||||||
Overnite Transportation Compan | Trucks And Trailers | Aug-00 | 135,378 | Feb-03 | 95,920 | 78,648 | ||||||||||||
Overnite Transportation Company | Trucks And Trailers | Aug-99 to Sep-00 | 14,455,990 | Aug-04 | 6,930,188 | 13,046,875 | ||||||||||||
Overnite Transportation Company | Trucks And Trailers | Mar-99 | 2,080,400 | Nov-04 | 398,160 | 2,120,739 | ||||||||||||
Overnite Transportation Company | Trucks And Trailers | Jul-00 to Aug-00 | 1,221,560 | Jan-05 | — | 1,560,746 | ||||||||||||
Sematech, Inc. | Manufacturing | Mar-00 | 1,230,000 | May-05 | 50,000 | 1,492,923 | ||||||||||||
Solectron Corporation | Manufacturing | Aug-99 | 1,467,047 | Oct-03 to Nov-03 | 544,500 | 1,166,009 | ||||||||||||
Solectron Corporation | Manufacturing | Nov-99 | 5,840,188 | Mar-04 to Aug-04 | 2,143,800 | 4,791,410 | ||||||||||||
Solectron Corporation | Manufacturing | Nov-99 to Jun-00 | 2,994,908 | Oct-04 to Aug-05 | 467,400 | 2,556,756 | ||||||||||||
Southwest Airlines Company | Aviation | Mar-99 | 3,238,500 | Feb-05 | 216,750 | 2,137,696 | ||||||||||||
Staples. Inc. | Office Automation | Dec-98 | 2,410,939 | May to Aug-02 | 1,356,830 | 1,711,188 | ||||||||||||
Staples, Inc. | Point Of Sale Equipment | Mar-99 to May-99 | 886,480 | Apr-05 to Jun-05 | 2 | 1,107,470 | ||||||||||||
Staples, Inc. | Point Of Sale Equipment | Sep-99 | 511,079 | Oct-05 | 2 | 644,548 | ||||||||||||
TAL International Container | Containers | Dec-98 | 42,500 | Sep-05 | 14,667 | 58,400 | ||||||||||||
TASC, Inc. | Office Automation | Jun-99 | 5,412 | Nov-01 | 1,082 | 4,276 | ||||||||||||
TASC, Inc. | Office Automation | Sep-99 | 9,652 | Mar-00 | 9,520 | 1,601 | ||||||||||||
TASC, Inc. | Electronics | Jun-99 to Sep-99 | 80,982 | Sep-02 to Dec-02 | 8,480 | 80,500 | ||||||||||||
TASC, Inc. | Computers | Mar-99 to Sep-99 | 1,031,896 | Sep-02 to Mar-03 | 50,747 | 1,034,637 | ||||||||||||
TASC, Inc. | Office Automation | May to Jun-99 | 41,977 | Jul-02 | 8,622 | 43,797 | ||||||||||||
The DDB Needham Worldwide Companies | Office Automation | Sep-98 | 884,900 | Jan to Jul-02 | 81,819 | 897,546 | ||||||||||||
The DDB Needham Worldwide Companies | Office Automation | Sep-98 | 780,130 | Nov-01 | 157,667 | 795,275 | ||||||||||||
The DDB Needham Worldwide Companies | Furniture & Fixtures | Sep-98 | 5,754 | Oct-03 | 863 | 5,816 | ||||||||||||
Tracy Locke Partnership | Furniture & Fixtures | Sep-98 | 316,222 | Nov-03 | 47,433 | 319,596 | ||||||||||||
Transamerica Leasing Inc. | Containers | Dec-98 | 42,500 | Nov-03 | 30,770 | 26,767 | ||||||||||||
Transamerica Leasing Inc. | Standard 20’ Imo1 Tank Container | Dec-98 | 21,250 | Nov-99 | 22,398 | 2,490 | ||||||||||||
Union Pacific Railroad Company | Covered Hopper Railcars | Dec-99 | 503,776 | Apr-03 | 634,135 | 239,147 | ||||||||||||
Union Pacific Railroad Company | Gondola Cars | Dec-99 | 367,935 | Nov-02 to Jun-03 | 140,335 | 588,332 | ||||||||||||
Union Pacific Railroad Company | Railroad | Dec-99 | 43,662 | Dec-03 | 13,289 | 22,980 | ||||||||||||
Union Pacific Railroad Company | Covered Hopper Railcars | Dec-99 | 261,964 | Nov-02 | 301,980 | 106,590 | ||||||||||||
Universal City Development Partners | Point Of Sale Equipment | Mar-99 | 668,474 | Sep-04 | 23,000 | 726,283 | ||||||||||||
Universal City Florida Partners | Computers | Jun-00 | 156,442 | Oct-03 to Dec-03 | 15,114 | 165,353 | ||||||||||||
Universal City Florida Partners | Computers | Jul-00 | 125,667 | Apr-04 | 200 | 132,825 | ||||||||||||
Universal City Florida Partners | Computers | May-99 to Mar-00 | 989,174 | Nov-02 to Aug-03 | 52,937 | 1,231,602 | ||||||||||||
Vanguard Car Rental USA Inc. | Motor Vehicles | Nov-00 to Dec-00 | 2,436,840 | Jun-04 | — | 2,165,218 | ||||||||||||
Watco Companies,Inc. | Covered Hopper Railcars | Dec-99 | 60,453 | Apr-03 | 77,901 | 1,117 |
Past performance is not necessarily indicative of future performance.
A-14
Excess of | |||||||||||||||||||
Equipment | Rents Over | ||||||||||||||||||
Acquisition | Acquisition | Sale | Expenses | ||||||||||||||||
Lessee | Type of Equipment | Date (1) | Price (2) | Sale Date | Price (3) | (4) | |||||||||||||
Watco Companies,Inc. | Covered Hopper Railcars | Dec-99 | 60,453 | Dec-03 | 60,296 | 3,750 | |||||||||||||
Watco Companies,Inc. | Railroad | Dec-99 | 40,302 | Feb-04 | 39,571 | 4,050 | |||||||||||||
Watco Companies,Inc. | Railroad | Dec-99 | 40,302 | Mar-05 | 38,881 | 18,117 | |||||||||||||
Whirlpool Corporation | Manufacturing | Dec-98 | 72,763 | Jan to Apr-02 | 17,752 | 56,523 | |||||||||||||
Williams Distributed Power Services | Electrical Generation | Dec-99 to Sep-00 | 374,152 | Jun-03 | 293,145 | 288,612 | |||||||||||||
Williams Distributed Power Services | Electrical Generation | Sep-00 | 136,145 | Feb-04 | 97,507 | 132,603 | |||||||||||||
Williams Distributed Power Services | Electrical Generation | Dec-99 to Mar-00 | 83,279 | Sep-05 | 33,000 | 82,477 | |||||||||||||
Xerox Corporation | Material Handling | Feb-99 | 52,880 | Oct-03 | 2 | 62,435 | |||||||||||||
Xerox Corporation | Material Handling | Dec-99 | 83,900 | Mar-04 to May-04 | 14,200 | 70,767 | |||||||||||||
Xerox Corporation | Material Handling | Dec-98 to Feb-99 | 276,815 | Oct-02 to Jan-03 | 50,950 | 221,663 | |||||||||||||
$ | 133,649,064 | $ | 63,511,275 | $ | 106,335,317 | ||||||||||||||
ATEL CAPITAL EQUIPMENT FUND IX | |||||||||||||||||||
Arbinet-Thexchange, Inc. | Telecommunications | Jun-03 | $ | 495,474 | Jun-05 | $ | 286,856 | $ | 381,095 | ||||||||||
ARYx Therapeutics, Inc. | RESEARCH | Feb-03 | 17,500 | Oct-04 | 11,666 | 13,558 | |||||||||||||
Cargill Incorporated | Railroad | Mar-05 | 47,457 | Sep-05 to Oct-05 | 35,853 | 20,491 | |||||||||||||
GE Aircraft Engines | Mazak Horizontal NC Lathe | Dec-02 | 997,875 | Jun-03 | 1,021,939 | 84,857 | |||||||||||||
GE Aircraft Engines | Manufacturing | Apr-02 | 4,375,396 | Dec-03 | 4,142,025 | 1,215,632 | |||||||||||||
General Electric Company-Plastics | Manufacturing | Jan-01 | 260,000 | Dec-04 | 42,000 | 247,500 | |||||||||||||
General Motors Corporation | Material Handling | Mar-02 | 23,467 | Sep-04 | 10,000 | 20,507 | |||||||||||||
General Motors Corporation | Material Handling | Mar-02 | 88,840 | Jul-05 to Sep-05 | 12,800 | 108,434 | |||||||||||||
Infiniroute Networks, Inc. | Computers | Jul-03 | 115,469 | Aug-05 | — | 132,931 | |||||||||||||
Infiniroute Networks, Inc. | Telecommunications | Jul-03 | 5,672 | Aug-05 | — | 6,530 | |||||||||||||
Lightship Holding, Inc. | Computers | Jun-04 | 375,000 | Jun-05 | 214,388 | 183,741 | |||||||||||||
Microfabrica Inc. | Computers | Jun-03 to Aug-03 | 46,196 | Sep-05 | — | 54,971 | |||||||||||||
Microfabrica Inc. | Research | May-03 to Aug-03 | 303,804 | Sep-05 | — | 361,510 | |||||||||||||
Nortel Networks, Inc. | Furniture & Fixtures | Mar-01 | 796,861 | May-05 to Oct-05 | 481,456 | 634,504 | |||||||||||||
Photuris, Inc. | Office Automation Equip., Furniture & Fixtures | Mar-01 | 1,000,000 | Apr-04 | — | 188,792 | |||||||||||||
Quick Study Radiology, Inc. | Computers | Mar-03 | 20,920 | Sep-03 | 19,479 | 4,586 | |||||||||||||
Rubicon Technology, Inc. | Manufacturing | Aug-03 | 300,000 | Mar-05 | — | 336,300 | |||||||||||||
Ryder Integrated Logistics Inc | Material Handling | Sep-04 | 540 | Dec-04 | 540 | 43 | |||||||||||||
Silicon Access Networks, Inc. | Computers and Research Equipment | Jul-01 to Mar-02 | 749,388 | Nov-03 to Dec-03 | 50,522 | 895,747 | |||||||||||||
Sony Pictures Entertainment, Inc. | Office Automation | Jan-02 | 762,524 | May-02 | 749,408 | 121,255 | |||||||||||||
U.S. Telepacific Corp. | Computers | Sep-03 to Oct- | 980,849 | Apr-05 to Jun-05 | 73,564 | 1,143,388 | |||||||||||||
U.S. Telepacific Corp. | Furniture & Fixtures | Oct-03 | 19,151 | Jun-05 | 1,436 | 22,180 | |||||||||||||
Williams Distributed Power Services | Electrical Generation | Feb-01 | 52,048 | Feb-04 | 40,598 | 28,411 | |||||||||||||
Williams Distributed Power Services | Capstone Micro Turbine System | Feb-01 | 74,943 | Jun-03 | 65,725 | 35,451 | |||||||||||||
Zeevo, Inc. | Computers and Research Equipment | Aug-01 to Mar-02 | 370,429 | Sep-03 to Dec-03 | 24,959 | 436,745 | |||||||||||||
$ | 12,279,803 | $ | 7,285,214 | $ | 6,679,159 | ||||||||||||||
�� | |||||||||||||||||||
ATEL CAPITAL EQUIPMENT FUND X | |||||||||||||||||||
Arbinet-Thexchange, Inc. | Telecommunications | Jul-03 | $ | 654,526 | Jun-05 | $ | 397,586 | $ | 377,572 | ||||||||||
Cargill Incorporated | Railroad | Mar-05 | 47,457 | Sep-05 to Oct-05 | 35,853 | 4,435 | |||||||||||||
GE Aircraft Engines | Manufacturing | Dec-03 | 240,310 | Dec-03 | 248,428 | 126 | |||||||||||||
Lightship Holding, Inc. | Computers | Jun-04 | 375,000 | Jun-05 | 214,388 | 231,559 | |||||||||||||
$ | 1,317,293 | $ | 896,255 | $ | 613,692 | ||||||||||||||
TOTALS OF ALL FUNDS: | $ | 147,246,160 | $ | 71,692,744 | $ | 113,628,168 | |||||||||||||
TABLE V SALES OR DISPOSALS OF EQUIPMENT FOOTNOTES
(1) | “Acquisition Date” is the date the Equipment was acquired by the prior program. | |
(2) | “Equipment Acquisition Price” is the actual cost of the item of Equipment, including Acquisition Fees, and any other expenditures incurred by the prior program in the acquisition of the Equipment. | |
(3) | “Sale Price” is the actual cash received for the purchase, early termination or casualty of the Equipment upon Lease termination, net of any direct out-of-pocket closing costs incurred by the prior program as a result of such termination. | |
(4) | “Excess of Rents Over Expenses” is a total amount of Lease rents, less any applicable direct out-of-pocket costs incurred by the prior program during the term of the Lease for the particular Lease transaction. |
Past performance is not necessarily indicative of future performance.
A-15
TABLE VI
ACQUISITION OF EQUIPMENT
BY PRIOR PROGRAMS
ACQUISITION OF EQUIPMENT
BY PRIOR PROGRAMS
The following is a summary of Equipment acquisitions and Lessees by the three most recent prior publicly-registered programs sponsored by ATEL Financial Services, LLC and its affiliates. Information concerning the prior programs’ Equipment acquisition is current through October 31, 2005.
Lease | ||||||||||||||||||
Commence | Acquisition | Percent | Lease | Type | ||||||||||||||
Lessee | Notes | Equipment Type | Date(s) (1) | Cost (2) | Leverage (3) | Term (4) | (5) | |||||||||||
ATEL Capital Equipment Fund VIII | ||||||||||||||||||
American Oncologic Hospital, Inc. | MRI Scanner | Jul-00 | $ | 1,871,181 | 60 | OL | ||||||||||||
ANC Rental Corporation | 23 | Mini Buses | Jan-01 | 1,860,020 | 36 | FP | ||||||||||||
ANC Rental Corporation | 23 | City Buses | Jan-01 | 1,506,459 | 60 | FP | ||||||||||||
ANC Rental Corporation | 23 | City Buses | Jan-01 | 1,168,509 | 60 | FP | ||||||||||||
ANC Rental Corporation | 23 | Mini Buses | Jan-01 | 576,820 | 36 | FP | ||||||||||||
BJ’s Wholesale Club, Inc. | 6 | Forklifts | Apr-99 | 594,748 | 60 | HP | ||||||||||||
Burlington Northern and Santa Fe Railroad Company | Locomotives | Dec-99 | 11,750,000 | 19 | OL | |||||||||||||
Burlington Northern and Santa Fe Railroad Company | Tri-Level Auto Racks | Sep-99 | 1,741,739 | 40 | OL | |||||||||||||
Celestica Corporation | Chip Placers, Stencil Printers | Jan-01 | 2,955,623 | 33 | OL | |||||||||||||
Consolidated Diesel Company | Siemens Telephone System | Feb-99 | 406,030 | 55 | HP | |||||||||||||
Consolidated Rail Corporation | Railroad Gondolas and Ballast Cars | Jan-00 | 12,922,864 | 23.79 | % | 36 | OL | |||||||||||
CSX Transportation, Inc. | Rail Boxcars | Sep-99 | 6,782,075 | 15 | OL | |||||||||||||
CVS Corporation | Material Handling Equipment | Apr-00 | 1,977,438 | 60 | HP/ FP | |||||||||||||
CVS Corporation | Material Handling Equipment | Apr-01 | 1,356,483 | 60 | HP/ FP | |||||||||||||
CVS Corporation | Material Handling Equipment | Jan-01 | 1,274,563 | 60 | HP/ FP | |||||||||||||
CVS Corporation | Telecommunications Equipment | Jan-00 to Apr-00 | 1,065,848 | 60 | HP | |||||||||||||
CVS Corporation | Telecommunications Equipment | Jul-00 to Oct-00 | 780,243 | 60 | HP | |||||||||||||
CVS Corporation | Handheld Radio Units | Apr-01 | 636,065 | 36 | HP | |||||||||||||
CVS Corporation | Handheld Inventory Control Units | Oct-00 | 323,473 | 60 | HP | |||||||||||||
CVS Corporation | Phone Equipment | Apr-01 | 130,968 | 60 | HP | |||||||||||||
CVS Corporation | Telecommunications Equipment | Oct-99 | 102,961 | 60 | HP | |||||||||||||
E.I.duPont de Nemours & Company | Okuma Lathe | Jul-00 | 324,805 | 72 | FP | |||||||||||||
Emery Worldwide Airlines, Inc. | MD Cargo Aircraft | Nov-99 | 5,725,300 | 1 | OL | |||||||||||||
Emery Worldwide Airlines, Inc. | Used McDonnell Douglas DC8-71F Cargo Aircraft | Jul-00 | 14,123,602 | 54 | OL | |||||||||||||
Finnair OYJ | 7 | McDonnell Douglas Passenger Aircraft | Dec-99 | 15,448,037 | 26.54 | % | 50 | OL | ||||||||||
General Electric Company | 8 | Lathes, Machining Centers | Oct-00 | 4,843,887 | 84 | FP | ||||||||||||
General Electric Company | 8 | Turning Lathes | Jul-00 | 2,747,940 | 84 | FP | ||||||||||||
General Electric Company | 8 | Milling Machine | Dec-99 to Feb-00 | 1,140,264 | 84 | FP | ||||||||||||
General Electric Company | 8 | Grinding Machine | Dec-99 to Mar-00 | 1,060,293 | 84 | FP | ||||||||||||
General Electric Company | 8 | Turbolisk | Dec-00 | 999,775 | 84 | FP | ||||||||||||
General Electric Company | 8 | Vertical Machining Centers | Apr-00 | 788,675 | 84 | FP | ||||||||||||
General Electric Company | 8 | Machining Center | Feb-01 | 733,600 | 84 | FP | ||||||||||||
General Electric Company | 8 | Vertical Machining Center | Mar-01 | 709,545 | 84 | OL | ||||||||||||
General Electric Company | 8 | Grinding Machines | Aug-00 | 660,444 | 84 | FP | ||||||||||||
General Electric Company | 8 | Monarch Machining Center | Sep-00 | 644,886 | 84 | FP | ||||||||||||
General Electric Company | 8 | Machine Tools | Jun-01 | 643,106 | 84 | FP | ||||||||||||
General Electric Company | 8 | VTX Machining Centers | Oct-99 to Dec-99 | 626,699 | 84 | HP/FP | ||||||||||||
General Electric Company | 8 | Rebuilt Producto Drilling Machine | Dec-00 | 593,500 | 84 | FP | ||||||||||||
General Electric Company | 8 | Rebuilt Omni-Mill | Jun-01 | 563,939 | 84 | FP | ||||||||||||
General Electric Company | 8 | Deckel Maho DMU Machine | May-99 | 546,500 | 84 | OL | ||||||||||||
General Electric Company | 8 | Grinding Machine | Jan-00 | 510,756 | 84 | FP | ||||||||||||
General Electric Company | 8 | Fadal Machining Centers | Jun-00 | 483,900 | 84 | FP | ||||||||||||
General Electric Company | 8 | Rebuilt CNC Lathe | Aug-00 | 476,458 | 84 | OL | ||||||||||||
General Electric Company | 8 | CNC Grinding Machine | Oct-00 | 363,400 | 84 | FP | ||||||||||||
General Electric Company | 8 | LeBlond Lathe | Jan-00 | 352,350 | 84 | HP | ||||||||||||
General Electric Company | 8 | Machine Center | Mar-99 | 352,000 | 84 | OL | ||||||||||||
General Electric Company | 8 | Grit Blast System | Jul-00 | 351,536 | 84 | FP | ||||||||||||
General Electric Company | 8 | Grinding Machine | Jun-00 | 330,222 | 84 | FP | ||||||||||||
General Electric Company | 8 | Rebuilt Bullard VTL | Feb-01 | 299,706 | 84 | FP | ||||||||||||
General Electric Company | 8 | Radio Graphic Inspection Facility | Sep-99 | 219,377 | 84 | FP | ||||||||||||
General Electric Company | 8 | Rebuilt Vacuum Blazing Machine | Mar-00 to Apr-00 | 213,820 | 84 | FP | ||||||||||||
General Electric Company | 8 | Used Forging Machine | Jan-00 | 177,410 | 84 | FP | ||||||||||||
General Electric Company | 8 | Forklifts | Aug-00 | 128,976 | 36 - 60 | OL/FP | ||||||||||||
General Electric Company | 8 | VTX Machining Centers | May-99 | 124,172 | 84 | OL | ||||||||||||
General Electric Company | 8 | Data Visualization System | May-00 | 101,374 | 84 | FP | ||||||||||||
General Electric Company | 8 | Laser Engraving System | May-00 | 80,159 | 84 | FP | ||||||||||||
General Electric Company | 8 | Air Flow Tester | Nov-99 | 61,960 | 60 | FP | ||||||||||||
General Electric Company | 8 | Power Trak | Jan-00 | 39,975 | 60 | OL | ||||||||||||
General Electric Company | 8 | Pinstamp Marking System | May-00 | 39,115 | 84 | FP | ||||||||||||
General Electric Company | 8 | Film Processor | Oct-99 | 35,000 | 84 | FP | ||||||||||||
General Electric Company | 8 | Equipment Add-On | Aug-00 | 23,530 | 69 - 81 | FP | ||||||||||||
General Electric Company | 8 | Add-on Equipment | Oct-00 | 18,000 | 80 | FP | ||||||||||||
General Electric Company | 8 | Radio Graphic Inspection Facility Upgrade | Jan-00 | 6,500 | 80 | FP | ||||||||||||
General Electric Company | 8 | Add-on Equipment | Sep-01 | 7,660 | 60 | FP | ||||||||||||
General Electric Company | 9 | Injection Molding Machine | Oct-00 | 1,305,371 | 36 | OL | ||||||||||||
General Electric Company | 9 | Prism Extruders | Nov-00 to Jul-01 | 668,252 | 60 | FP | ||||||||||||
General Electric Company | 9 | Extruder Systems | May-99 | 281,595 | 60 | OL | ||||||||||||
Georgia Gulf Corporation | Quad Hopper Cars | Sep-99 | 1,416,678 | 58 | OL | |||||||||||||
Great American Management Services, Inc. | Rail Boxcars | Oct-99 | 3,627,223 | 30 | OL | |||||||||||||
IMC-Agrico Company | 10 | Storage Facility | Jun-00 | 6,712,090 | 78 | OL | ||||||||||||
Ingersoll International, Inc. | Vertical Machine Centers | Oct-00 | 540,794 | 84 | FP | |||||||||||||
Ispat Inland Inc. | Coil Carriers | May-00 | 867,000 | 60 | OL | |||||||||||||
Lafarge Gypsum, a division of Lafarge Corporation | 24 | Forklifts | Oct-00 | 766,805 | 36 | OL | ||||||||||||
Lafarge Gypsum, a division of Lafarge Corporation | 24 | Forklift Trucks | Feb-01 | 702,312 | 36 | OL | ||||||||||||
Lafarge Gypsum, a division of Lafarge Corporation | 24 | Wheel Loader | Jan-01 | 317,111 | 60 | OL | ||||||||||||
Minteq International, Inc. | Laser Profiling System | Nov-99 | 303,211 | 36 | HP |
Past performance is not necessarily indicative of future performance.
A-16
Lease | ||||||||||||||||||
Commence | Acquisition | Percent | Lease | Type | ||||||||||||||
Lessee | Notes | Equipment Type | Date(s) (1) | Cost (2) | Leverage (3) | Term (4) | (5) | |||||||||||
National Gypsum Company | CAT Loaders / Dozers | Oct-00 | 1,147,259 | 36 | OL | |||||||||||||
National Gypsum Company | CAT Loader | Jan-01 | 437,732 | 60 | OL | |||||||||||||
National Steel Corporation | CAT Loaders | Jan-00 | 1,135,900 | 36 | OL | |||||||||||||
NVR, INC. | Home Manufacturing Equipment | Aug-99 | 193,414 | 84 | FP | |||||||||||||
Omnicom Group, Inc. | 11 | Office Automation | Oct-98 | 1,749,913 | 36 | HP | ||||||||||||
Omnicom Group, Inc. | 11 | Office Furniture | Oct-98 | 321,976 | 60 | FP | ||||||||||||
Overnite Transportation Company | Conventional Tractors | Jan-00 | 7,061,889 | 48 | OL | |||||||||||||
Overnite Transportation Company | Conventional Tractors | Jul-00 | 3,103,308 | 48 | OL | |||||||||||||
Overnite Transportation Company | Tractors and Trailers | Oct-00 | 2,921,394 | 48 | OL | |||||||||||||
Overnite Transportation Company | Conventional Tractors | Apr-99 | 2,080,400 | 48 | OL | |||||||||||||
Overnite Transportation Company | Trailers | Jul-00 | 2,054,380 | 96 | FP | |||||||||||||
Overnite Transportation Company | Conventional Tractors | Oct-99 | 1,104,976 | 48 | OL | |||||||||||||
Seamex International Ltd. | 12, 13 | Anchor Handler Tug Supply Vessel | Dec-98 | 3,952,500 | 44 | OL | ||||||||||||
Sebastiani Vineyards, Inc. | Bottle Filler | Jan-00 | 365,913 | 84 | FP | |||||||||||||
Sematech, Inc. | Manufacturing Equipment | Apr-00 | 1,230,000 | 36 | OL | |||||||||||||
Seven Hills Paperboard, LLC | Neles Control Systems | Jan-01 | 1,178,588 | 60 | OL | |||||||||||||
Signature Flight Support Corporation | Refueler Truck | Jan-00 | 290,000 | 60 | FP | |||||||||||||
Solectron Corporation | Chip Placers | Dec-99 | 15,366,268 | 48 | OL | |||||||||||||
Solectron Corporation | Chip Placers | Sep-99 | 1,496,388 | 48 | OL | |||||||||||||
Solectron Corporation | Fuji QP Module | Jun-00 | 92,228 | 45 | OL | |||||||||||||
Southwest Airlines Company | 14 | Boeing 737 Aircraft | Mar-99 | 3,238,500 | 50 | OL | ||||||||||||
Staples, Inc. | Point of Sale Equipment | Jan-99 | 2,410,939 | 60 | FP | |||||||||||||
Staples, Inc. | Point of Sale Equipment | Apr-99 | 681,910 | 60 | FP | |||||||||||||
Staples, Inc. | Point of Sale Equipment | Sep-99 | 511,079 | 60 | OL | |||||||||||||
Staples, Inc. | Point of Sale Equipment | May-99 | 204,571 | 60 | FP | |||||||||||||
Staples, Inc. | Forklifts | May-99 | 101,480 | 48 | OL | |||||||||||||
Staples, Inc. | Material Handling Equipment | Oct-99 | 68,030 | 48 | OL | |||||||||||||
Stewart & Stevenson Services, Inc. | Gas Compressors | Jul-99 | 6,272,782 | 78 | HP | |||||||||||||
Stewart & Stevenson Services, Inc. | Gas Compressors | Oct-99 | 4,508,796 | 84 | HP | |||||||||||||
Sysco Food Services Albany | Tractors | Sep-00 | 965,311 | 84 | FP | |||||||||||||
Sysco Food Services Albany | Refrigerated Trailers | Jun-00 | 760,188 | 96 | FP | |||||||||||||
Sysco Food Services Albany | Refrigerated Trailers | Sep-99 | 519,620 | 96 | FP | |||||||||||||
Sysco Food Services Albany | Refrigerated Trailers | Feb-00 | 220,012 | 96 | FP | |||||||||||||
TASC, Inc. | Office Automation | Oct-99 | 675,132 | 36 | FP | |||||||||||||
TASC, Inc. | Office Automation | Jul-99 | 494,787 | 36 | FP | |||||||||||||
Transamerica Leasing Inc. | 15 | Intermodal Containers | Dec-98 | 21,250,000 | 120 | FP | ||||||||||||
Union Pacific Railroad Company | Covered Hopper Cars | Feb-00 | 16,523,854 | 24 | OL | |||||||||||||
Union Pacific Railroad Company | Fixed-end Gondola Railcars | Dec-99 | 5,021,142 | 72 | OL | |||||||||||||
Universal City Development Partners | Point of Sale Equipment | Apr-99 | 668,474 | 60 | FP | |||||||||||||
Universal City Florida Hotel Venture | Hotel Laundry Equipment | Sep-99 | 3,882,463 | 84 | FP | |||||||||||||
Universal City Florida Hotel Venture | Laundry Equipment | Mar-01 | 174,207 | 66 | FP | |||||||||||||
Universal City Florida Hotel Venture | Laundry Equipment | Aug-02 | 293,570 | 67 | FP | |||||||||||||
Universal City Florida Partners | Office Automation Equipment | Jul-99 | 487,909 | 36 | HP | |||||||||||||
Universal City Florida Partners | Office Automation Equipment | Jul-00 | 282,109 | 36 | HP | |||||||||||||
Universal City Florida Partners | Office Automation Equipment | Oct-99 | 248,838 | 36 | HP | |||||||||||||
Universal City Florida Partners | Office Automation Equipment | Apr-00 | 134,872 | 36 | HP | |||||||||||||
Universal City Florida Partners | Office Automation Equipment | Jan-00 | 117,555 | 36 | HP | |||||||||||||
Whirlpool Corporation | Hydraulic Traveling Gantry Crane | Jan-99 | 72,763 | 60 | OL | |||||||||||||
Williams Distributed Power Services, Inc. | 16 | Micro Turbine Systems | Oct-00 | 1,230,020 | 60 | OL | ||||||||||||
Williams Distributed Power Services, Inc. | 16 | Micro Turbine Systems | Jan-00 | 1,056,690 | 60 | OL | ||||||||||||
Williams Distributed Power Services, Inc. | 16 | Micro Turbine Systems | Apr-00 | 865,522 | 60 | OL | ||||||||||||
Williams Distributed Power Services, Inc. | 16 | Micro Turbine Systems | Apr-01 | 215,895 | 60 | OL | ||||||||||||
Xerox Corporation | Material Handling Equipment | Dec-98 to Mar-99 | 378,964 | 44 | OL | |||||||||||||
Xerox Corporation | Material Handling Equipment | Dec-99 | 108,572 | 44 | OL | |||||||||||||
Xerox Corporation | Material Handling Equipment | Sep-99 | 47,858 | 44 | OL | |||||||||||||
Xerox Corporation | Material Handling Equipment | Nov-99 | 47,232 | 44 | OL | |||||||||||||
ATEL Capital Equipment Fund VIII total: | $ | 249,040,775 | ||||||||||||||||
ATEL Capital Equipment Fund IX | ||||||||||||||||||
3M Company | Laser Machine | Sep-05 | $ | 495,000 | 60 | OL | ||||||||||||
Arbinet-Thexchange, Inc. | Storage Array System | Jul-03 | 495,474 | 36 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Computer Hardware | Jun-04 | 171,041 | 36 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Office Furniture | Aug-04 | 74,243 | 36 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Computer Hardware & Phone System | Jul-04 | 73,396 | 36 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Computer Software | Jan-04 | 44,138 | 24 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Software Licenses | Jan-04 | 42,943 | 24 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Computer Software | Nov-04 | 6,377 | 24 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Computer Hardware | Nov-04 | 53,313 | 36 | FP | |||||||||||||
ARYx Therapeutics | Testing & Lab Equipment | Mar-03 | 174,668 | 24 | HP | |||||||||||||
ARYx Therapeutics, Inc. | Computer Equipment | Jul-04 | 115,279 | 24 | FP | |||||||||||||
Aspen Aerogels, Inc. | Manufacturing Equipment | Nov-04 | 583,333 | 36 | FP | |||||||||||||
Ball Corporation | Bulk Boxes & Pallets | Aug-03 | 1,049,039 | 71 | FP | |||||||||||||
Basin Electric Power Cooperative | 17 | Walking Drag Line | Jul-00 | 6,786,284 | 72 | OL | ||||||||||||
Basin Electric Power Cooperative | 17 | Walking Drag Line | Jan-01 | 4,529,113 | 66 | OL | ||||||||||||
Bayer Corporation | Lab Equipment | Jul-04 | 333,370 | 36 | OL | |||||||||||||
Bayer Corporation | Lab Equipment | Nov-04 | 249,995 | 48 | OL | |||||||||||||
Bayer Corporation | Material Handling | Dec-04 | 63,556 | 60 | FP | |||||||||||||
Bayer Corporation | Backhoe | Aug-04 | 28,500 | 36 | OL | |||||||||||||
Bayer Corporation | Lab Equipment | Oct-04 | 19,900 | 24 | OL | |||||||||||||
Bayer Corporation | Material Handling | Jan-05 | 10,354 | 36 | HP | |||||||||||||
Boingo Wireless, Inc. | Computer Equipment | Sep-04 | 102,518 | 30 | FP | |||||||||||||
Boingo Wireless, Inc. | Computer Equipment | Dec-04 | 17,953 | 27 | FP | |||||||||||||
Cargill, Incorporated | Covered Hopper Cars | Mar-05 | 5,991,497 | 61 | OL | |||||||||||||
Cedar Point Communications, Inc. | Computer Equipment | Aug-04 | 185,618 | 36 | FP | |||||||||||||
Cedar Point Communications, Inc. | Computer Equip & Office Funiture | Feb-05 | 125,000 | 36 | FP | |||||||||||||
Cedar Point Communications, Inc. | Computer Equip & Office Furniture | Sep-04 | 73,112 | 36 | FP | |||||||||||||
Cedar Point Communications, Inc. | Computer Equip & Office Funiture | Jan-05 | 69,717 | 36 | FP | |||||||||||||
Cedar Point Communications, Inc. | Computer Equip & Office Funiture | Nov-04 | 46,554 | 36 | FP | |||||||||||||
Colowyo Coal Company L.P. | 1985 Walking Electric Dragline | Apr-03 | 3,791,357 | 32 | OL | |||||||||||||
CVS Pharmacy, Inc. | 18 | Phone System | Jan-02 | 326,231 | 60 | FP | ||||||||||||
CVS Pharmacy, Inc. | 18 | Material Handling | Jul-01 | 207,486 | 60 | FP | ||||||||||||
CVS Pharmacy, Inc. | 18 | Printing / Graphic Arts | Jan-02 | 196,345 | 60 | OL | ||||||||||||
CVS Pharmacy, Inc. | 18 | Phone System | Oct-01 | 72,808 | 60 | FP |
Past performance is not necessarily indicative of future performance.
A-17
Lease | ||||||||||||||||||
Commence | Acquisition | Percent | Lease | Type | ||||||||||||||
Lessee | Notes | Equipment Type | Date(s) (1) | Cost (2) | Leverage (3) | Term (4) | (5) | |||||||||||
DaimlerChrysler Corporation | Material Handling Equipment | Jan-05 | 432,740 | 36 | OL | |||||||||||||
DaimlerChrysler Corporation | Forklifts | Mar-05 | 142,913 | 36 | OL | |||||||||||||
Dorado Network Systems Corporation | Computer Equipment | Jul-04 | 89,066 | 18 | FP | |||||||||||||
Dorado Network Systems Corporation | Office Furniture | Sep-04 | 87,430 | 18 | FP | |||||||||||||
Dorado Network Systems Corporation | Computer Equip & Office Furniture | Jan-05 | 62,910 | 18 | FP | |||||||||||||
Dorado Network Systems Corporation | Computer Equipment | Aug-04 | 48,084 | 18 | FP | |||||||||||||
East Midlands Ambulance Service NHS | Ambulance & Emergency Vehicles | Feb-05 | 4,379,075 | 60 | HP | |||||||||||||
Trust East Midlands Ambulance Service NHS | Patient Transport Vehicles | Jul-05 | 197,604 | 60 | HP | |||||||||||||
Ford Trust Motor Company | Material Handling Equipment | Mar-04 to Mar-05 | 9,997,538 | 36-60 | FP, HP | |||||||||||||
Ford Motor Company | Material Handling Equipment | Aug-03 | 2,878,521 | 30-58 | OL, HP, FP | |||||||||||||
Ford Motor Company | Batteries and Fork Lifts | Oct-03 | 120,901 | 34-60 | OL, HP, FP | |||||||||||||
General Electric Company | 8 | Grinders | Sep-05 | 2,739,297 | 84 | OL | ||||||||||||
General Electric Company | 8 | Lathes | Apr-02 | 2,240,326 | 84 | OL | ||||||||||||
General Electric Company | 8 | Toshulin Powerturn Machine | Aug-02 | 1,895,000 | 84 | OL | ||||||||||||
General Electric Company | 8 | Remfg Bullard Mill Machine | Dec-03 to Aug-03 | 1,513,926 | 84 | FP | ||||||||||||
General Electric Company | 8 | Rosler Vertical Spindle | Sep-03 | 753,516 | 84 | FP | ||||||||||||
General Electric Company | 8 | Mazak Horizontal Nc Lathe | Dec-02 | 746,775 | 84 | FP | ||||||||||||
General Electric Company | 8 | Blohm Cnc Grinding Machine | Aug-03 | 599,000 | 84 | FP | ||||||||||||
General Electric Company | 8 | Grinder | Mar-01 | 561,697 | 84 | FP | ||||||||||||
General Electric Company | 8 | Sputtering Machine | Sep-05 | 506,871 | 84 | FP | ||||||||||||
General Electric Company | 8 | Remfg Sundstrand Omnimill | Mar-03 | 461,179 | 84 | FP | ||||||||||||
General Electric Company | 8 | Sundstrand Omnimill | Jul-02 | 461,179 | 84 | OL | ||||||||||||
General Electric Company | 8 | Tube Benders | Feb-03 | 343,738 | 84 | FP | ||||||||||||
General Electric Company | 9 | Crane | Feb-02 | 282,050 | 60 | OL | ||||||||||||
General Electric Company | 8 | Argon Atomsphere Furnaces | Apr-05 | 278,120 | 84 | FP | ||||||||||||
General Electric Company | 9 | Molding Machine | Dec-00 | 260,000 | 36 | OL | ||||||||||||
General Electric Company | 8 | Projection Welder | Oct-02 | 251,100 | 84 | FP | ||||||||||||
General Electric Company | 19 | Drilling Machine | Jul-02 | 234,000 | 60 | FP | ||||||||||||
General Electric Company | 8 | Wire EDM | Jul-02 | 172,392 | 84 | OL | ||||||||||||
General Electric Company | 9 | Molding Machine | Apr-01 | 168,012 | 60 | FP | ||||||||||||
General Electric Company | 8 | Electrolytic Cutoff Machine | Nov-02 | 119,935 | 84 | FP | ||||||||||||
General Motors Corporation | Material Handling | Mar-02 | 2,910,436 | 26-70 | FP | |||||||||||||
Graham Offshore, LLC | 20 | Crew and Supply Boats | Jan-02 | 9,500,000 | 60 | OL | ||||||||||||
Helijet International Inc. | Helicopters | Apr-04 | 2,680,000 | 60 | OL | |||||||||||||
InSite One, Inc. | Computer Equipment | Aug-04 | 375,000 | 24 | FP | |||||||||||||
International Business Machines Corporation | Scanning Laser System | Apr-05 | 227,141 | 48 | OL | |||||||||||||
International Paper Company | Material Handling & Loaders | Oct-05 | 731,499 | 36-60 | OL,HP | |||||||||||||
International Paper Company | Material Handling & Loaders | Sep-05 | 448,021 | 48-60 | OL,HP | |||||||||||||
International Paper Company | Loader, Forklifts | May-05 | 365,814 | 36 | OL | |||||||||||||
International Paper Company | Wheel Loader | Aug-05 | 260,650 | 48 | OL | |||||||||||||
International Paper Company | Wheel Loader | Aug-05 | 189,300 | 60 | OL | |||||||||||||
International Paper Company | Tractor | Apr-05 | 184,461 | 72 | HP | |||||||||||||
International Paper Company | Loader | Sep-05 | 132,188 | 36 | OL | |||||||||||||
International Paper Company | Material Handling Equipment | Nov-05 | 86,750 | 60 | FP | |||||||||||||
International Paper Company | Forklift | Jul-05 | 57,975 | 36 | OL | |||||||||||||
Johnson Technology, Inc. | 21 | EDM Speed Drillers | Apr-02 | 1,221,500 | 84 | FP | ||||||||||||
Johnson Technology, Inc. | 21 | EDM Speed Drillers | May-02 | 716,000 | 84 | FP | ||||||||||||
Johnson Technology, Inc. | 21 | EDM Machines | Sep-02 | 261,710 | 84 | FP | ||||||||||||
Johnson Technology, Inc. | 21 | Material Handling | Feb-02 | 14,700 | 84 | FP | ||||||||||||
Johnson Technology, Inc. | Edm Speed Driller | Oct-02 | 358,000 | 84 | FP | |||||||||||||
Lightship Holding, Inc. & Lightship Telecom, LLC | Telecommunications, Office Furniture | Jul-04 | 375,000 | 24 | FP | |||||||||||||
Mastec North America, Inc. | Various Construction Equipment | Jan-03 | 2,392,924 | 60 | HP | |||||||||||||
Mastec North America, Inc. | Kubota Excavators W/Bucket | Apr-03 | 238,320 | 36 | OL | |||||||||||||
Mastec North America, Inc. | 2001 Manitowoc 28-Ton Boom Truck | Apr-03 | 125,000 | 36 | OL | |||||||||||||
Mead Westvaco Corporation | Lumber Milling Equipment | Oct-05 | 3,630,208 | 60-84 | HP | |||||||||||||
Meadwestvaco Corporation | Forklifts | Jul-05 | 432,363 | 36 | OL | |||||||||||||
Meadwestvaco Corporation | Forklifts | May-05 | 259,866 | 36 | OL | |||||||||||||
Meadwestvaco Corporation | Lift Trucks | Aug-05 | 197,721 | 48 | OL | |||||||||||||
Meadwestvaco Corporation | Forklift, Dump Truck | May-05 | 143,472 | 36-48 | OL | |||||||||||||
Meadwestvaco Corporation | Material Handling | Jan-05 | 1,019,671 | 36 | OL | |||||||||||||
Memgen Corporation | Computer, Software & Lab Equip | Sep-03 | 350,000 | 24 | FP | |||||||||||||
Miasole | Lab Equipment | Jan-05 | 25,692 | 18 | FP | |||||||||||||
National Gypsum Company | CAT Equipment | Jul-02 | 1,382,558 | 60 | HP | |||||||||||||
National Gypsum Company | Roll Crusher | Jul-02 | 884,757 | 60 | HP | |||||||||||||
National Gypsum Company | CAT Equipment | Jul-01 | 853,074 | 60 | OL | |||||||||||||
National Gypsum Company | Tractor | Apr-01 | 662,273 | 60 | OL | |||||||||||||
National Gypsum Company | Wheel loader and tractor | Jan-02 | 383,208 | 48-60 | OL | |||||||||||||
National Gypsum Company | CAT Equipment | Oct-01 | 207,266 | 60 | OL | |||||||||||||
National Gypsum Company | Freightliner Tractor | Nov-02 | 69,909 | 56 | HP | |||||||||||||
National Gypsum Company | Dump trailer | Sep-02 | 24,959 | 60 | HP | |||||||||||||
National Gypsum Company | CAT Equipment | Aug-02 | 8,375 | 47 | OL | |||||||||||||
NBC Universal, Inc. | Electronic Editing System | Jan-05 | 2,124,286 | 36 | HP | |||||||||||||
NBC Universal, Inc. | Electronic Editing System | Jul-05 | 1,113,255 | 36 | HP | |||||||||||||
NBC Universal, Inc. | Electronic Editing System | Nov-04 | 905,598 | 24 | OL | |||||||||||||
NBC Universal, Inc. | Electronic Editing System | Jan-05 | 803,590 | 24 | OL | |||||||||||||
NBC Universal, Inc. | Electronic Editing System | Dec-04 | 256,945 | 24 | OL | |||||||||||||
NBC Universal, Inc. | Computer Equipment | Mar-05 | 174,660 | 22 | OL | |||||||||||||
NBC Universal, Inc. | Computer Equipment | Feb-05 | 80,921 | 35 | HP | |||||||||||||
NBC Universal, Inc. | Computer Equipment | Jun-05 | 46,410 | 31 | HP | |||||||||||||
New NGC, Inc. | Freightliner Tractors | Jul-05 | 159,528 | 72 | FP | |||||||||||||
New NGC, Inc. dba National Gypsum Company | Cat Tractor, Grader, Excavator | Nov-04 | 1,067,525 | 60-84 | FP,OL | |||||||||||||
New NGC, Inc. dba National Gypsum Company | Wheel Loader | Jul-03 | 827,415 | 60 | HP | |||||||||||||
New NGC, Inc. dba National Gypsum Company | Cat Tractor | Dec-04 | 477,297 | 48 | OL | |||||||||||||
New NGC, Inc. dba National Gypsum Company | Caterpillar Quarry Truck | Jul-04 | 417,280 | 60 | OL | |||||||||||||
New NGC, Inc. dba National Gypsum Company | Freightliner Tractor | Aug-04 | 79,328 | 72 | FP | |||||||||||||
New NGC, Inc. dba National Gypsum Company | Freightliner Tractor | Sep-04 | 79,328 | 72 | FP | |||||||||||||
Nortel Networks, Inc. | Office Furniture | Mar-01 | 1,065,692 | 83 | FP | |||||||||||||
On24, Inc. | Computer Equipment | Jan-05 | 130,409 | 36 | FP | |||||||||||||
On24, Inc. | Computer Equipment | Sep-04 | 53,317 | 36 | FP | |||||||||||||
Overnite Transportation Company | Over-the-road Tractors | Jul-04 | 3,081,360 | 60 | OL | |||||||||||||
Peabody Holding Company | Joy Mining Equipment | Oct-02 | 5,083,396 | 60 | FP | |||||||||||||
Peabody Holding Company, Inc. | Joy Continuous Miner & Haulers | Oct-02 | 28,039 | 60 | FP | |||||||||||||
Photuris, Inc. | Testing & Office Equip, Furniture | Mar-01 | 1,000,000 | 36 | FP |
Past performance is not necessarily indicative of future performance.
A-18
Lease | ||||||||||||||||||
Commence | Acquisition | Percent | Lease | Type | ||||||||||||||
Lessee | Notes | Equipment Type | Date(s) (1) | Cost (2) | Leverage (3) | Term (4) | (5) | |||||||||||
Proficient Networks, Inc. | 22 | Computer Equipment | Apr-03 to Aug-03 | 121,141 | 24 | FP | ||||||||||||
Quick Study Radiology, Inc. | Computer Related Equipment | Apr-03 | 20,920 | 26 | FO | |||||||||||||
Rubicon Technology, Inc. | Lapping & Polishing Machine | Sep-03 | 300,000 | 18 | FP | |||||||||||||
Rubicon Technology, Inc. | Surface Analyzer | Dec-03 | 200,000 | 24 | FP | |||||||||||||
Ryder Integrated Logistics, Inc. | Forklifts and Pallet Truck | Aug-05 | 586,487 | 36 | OL | |||||||||||||
Ryder Integrated Logistics, Inc. | Forklifts | Sep-04 | 161,260 | 36 | FP | |||||||||||||
Ryder Integrated Logistics, Inc. | Forklifts | Jan-05 | 154,267 | 36 | OL | |||||||||||||
Ryder Integrated Logistics, Inc. | Material Handling | Jul-05 | 135,330 | 36 | OL | |||||||||||||
Ryder Integrated Logistics, Inc. | Forklifts | Apr-05 | 130,103 | 36 | OL | |||||||||||||
Ryder Integrated Logistics, Inc. | Forklifts | May-05 | 107,723 | 36 | OL | |||||||||||||
Ryder Integrated Logistics, Inc. | Forklifts | Jun-04 | 104,683 | 29-36 | OL | |||||||||||||
Ryder Integrated Logistics, Inc. | Forklifts | Mar-05 | 65,978 | 36 | OL | |||||||||||||
Ryder Integrated Logistics, Inc. | Material Handling | Jun-05 | 47,552 | 36-60 | OL,FP | |||||||||||||
Ryder Integrated Logistics, Inc. | Forklift | Sep-05 | 41,403 | 36 | OL | |||||||||||||
Ryder Integrated Logistics, Inc. | Forklifts | May-04 | 40,183 | 36 | OL | |||||||||||||
Ryder Integrated Logistics, Inc. | Forklifts | Aug-04 | 34,144 | 36 | OL | |||||||||||||
Ryder Truck Rental, Inc. | Forklifts | Sep-04 | 34,762 | 60 | OL | |||||||||||||
Sea Mar Management | Offshore Supply Vessel | Jan-05 | 250,000 | 36 | FP | |||||||||||||
SEACOR Marine Inc. | 20 | Supply boat | Jan-02 | 1,700,000 | 60 | OL | ||||||||||||
Seven Hills Paperboard, Llc | Wheel Loader & Forklifts | Oct-03 | 136,355 | 36 | HP | |||||||||||||
Silicon Access Networks, Inc. | Testing & Computer Equipment | Apr-02 | 883,623 | 24 | FP | |||||||||||||
Silicon Access Networks, Inc. | Computer Peripherals | Aug-01 | 114,304 | 30 | FP | |||||||||||||
Silverpop Systems, Inc. | Networking & Computer Equipment | Sep-04 | 116,986 | 24 | FP | |||||||||||||
Silverpop Systems, Inc. | Networking & Computer Equip | Nov-04 | 62,109 | 24 | FP | |||||||||||||
Sony Pictures Entertainment, Inc. | Digital recorders | Nov-01 | 762,524 | 36 | FP | |||||||||||||
StarCite, Inc. | Working Capital Loan | Jul-04 | 175,000 | 24 | FP | |||||||||||||
Sussex Ambulance Service NHS Trust | Ambulance & Emergency Vehicles | Dec-04 | 1,164,625 | 60 | HP | |||||||||||||
Sussex Ambulance Service NHS Trust | Ambulance & Emergency Vehicles | Jan-05 | 554,563 | 60 | HP | |||||||||||||
The Sabine Mining Company | Draglines | Nov-04 | 12,650,961 | 62 | OL | |||||||||||||
U.S. Telepacific Corp. | Networking Equipment | Oct-03 | 599,272 | 18 | FP | |||||||||||||
U.S. Telepacific Corp. | Titan System Materials | Sep-03 | 345,944 | 18 | FP | |||||||||||||
U.S. Telepacific Corp. | Networking Equipment and Office Furniture | Oct-03 | 54,784 | 18 | FP | |||||||||||||
Visteon Corporation | Bulk Storage Silos | Jan-04 | 410,250 | 60 | HP | |||||||||||||
Whirlpool Corporation | Material Handling Equipment | Jan-04 to Mar-05 | 3,174,157 | 36-60 | OL, HP, FP | |||||||||||||
Williams Distributed Power Services, Inc. | 16 | Micro Turbine Systems | Apr-01 | 717,356 | 60 | OL | ||||||||||||
Zeevo, Inc. | Testing & Computer Equipment | Nov-01 | 99,421 | 24 | FP | |||||||||||||
Zeevo, Inc. | Testing & Lab Equipment | Feb-02 | 96,457 | 24 | FP | |||||||||||||
Zeevo, Inc. | Computer Peripherals | Sep-01 | 69,443 | 24 | FP | |||||||||||||
Zeevo, Inc. | Testing & Lab Equipment | Jan-02 | 53,583 | 24 | FP | |||||||||||||
Zeevo, Inc. | Testing & Computer Equipment | Apr-02 | 51,525 | 24 | FP | |||||||||||||
ATEL Capital Equipment Fund IX total: | $ | 139,602,925 | ||||||||||||||||
ATEL Capital Equipment Fund X | ||||||||||||||||||
Alveolus, Inc. | Senior Term Loan | Sep-05 | $ | 250,000 | 36 | FP | ||||||||||||
Alveolus, Inc. | Senior Term Loan | Oct-05 | 125,000 | 36 | FP | |||||||||||||
Arbinet-thexchange | Telecom Switch | Aug-03 | 654,526 | 36 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Computer Hardware | Jun-04 | 171,041 | 36 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Office Furniture | Aug-04 | 74,243 | 36 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Computer Hardware and Phone | Jul-04 | 73,396 | 36 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | System Computer Hardware | Nov-04 | 53,313 | 36 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Computer Software | Sep-04 | 44,138 | 24 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Software Licenses | Jan-04 | 42,943 | 24 | FP | |||||||||||||
Arsenal Digital Solutions Worldwide, Inc. | Computer Software | Nov-04 | 6,377 | 24 | FP | |||||||||||||
ARYx Therapeutics | Testing equipment | Apr-03 | 182,125 | 30 | FP | |||||||||||||
ARYx Therapeutics | Computer Equipment | Jul-04 | 115,279 | 24 | FP | |||||||||||||
Aspen Aerogels, Inc. | Manufacturing Equipment | Nov-04 | 583,333 | 36 | FP | |||||||||||||
Ball Corporation | Bulk boxes, Pallets & Tiers | Sep-03 | 2,793,225 | 59 | FP | |||||||||||||
Ball Corporation | Bulk boxes, Pallets & Tiers | Oct-03 | 631,118 | 60 | FP | |||||||||||||
Ball Corporation | Bulk boxes, Pallets & Tiers | Nov-03 | 408,800 | 60 | FP | |||||||||||||
Bedfordshire and Hertfordshire and Paramedic Service NHS Trust | Ambulance & Emergency Vehicles | Jun-05 | 2,763,106 | 60 | HP | |||||||||||||
Boingo Wireless, Inc. | Computer Equipment | Sep-04 | 102,518 | 30 | FP | |||||||||||||
Boingo Wireless, Inc. | Computer Equipment | Jul-05 | 33,005 | 20 | FP | |||||||||||||
Boingo Wireless, Inc. | Computer Equipment | Dec-04 | 17,953 | 27 | FP | |||||||||||||
Cargill, Incorporated | Covered Hopper Cars | Mar-05 | 5,991,497 | 61 | OL | |||||||||||||
Cedar Point Communications, Inc. | Computer Equip & Office Funiture | Jun-05 | 188,859 | 36 | FP | |||||||||||||
Cedar Point Communications, Inc. | Computer Equipment | Aug-04 | 185,618 | 36 | FP | |||||||||||||
Cedar Point Communications, Inc. | Computer Equip & Office Funiture | Feb-05 | 125,000 | 36 | FP | |||||||||||||
Cedar Point Communications, Inc. | Computer Equipment and Office Furniture | Sep-04 | 73,112 | 36 | FP | |||||||||||||
Cedar Point Communications, Inc. | Computer Equip & Office Funiture | Jan-05 | 69,717 | 36 | FP | |||||||||||||
Cedar Point Communications, Inc. | Computer & Lab Equipment | Sep-05 | 61,141 | 36 | FP | |||||||||||||
Cedar Point Communications, Inc. | Computer Equip & Office Funiture | Nov-04 | 46,554 | 36 | FP | |||||||||||||
Chelsio Communications, Inc. | Computer Equipment | Nov-05 | 27,600 | 24 | FP | |||||||||||||
Colowyo Coal Company L.P. | Walking Drag Line | Apr-03 | 2,000,000 | 32 | OL | |||||||||||||
Daimler Chrysler Corporation | Materials Handling | Oct-04 | 2,363,882 | 60 | FP | |||||||||||||
Dorado Network Systems Corporation | Computer Equipment | Jul-04 | 89,066 | 18 | FP | |||||||||||||
Dorado Network Systems Corporation | Office Furniture | Jun-04 | 87,430 | 18 | FP | |||||||||||||
Dorado Network Systems Corporation | Computer Equip & Office Furniture | Jan-05 | 62,910 | 18 | FP | |||||||||||||
Dorado Network Systems Corporation | Computer Equipment | Aug-04 | 48,084 | 18 | FP | |||||||||||||
Evil Twin Studios, Inc. | Computer Equip & Office Furniture | Aug-05 | 25,373 | 24 | FP | |||||||||||||
Evil Twin Studios, Inc. | Computer & Office Equipment | Oct-05 | 6,549 | 24 | FP | |||||||||||||
Ford Motor Company | Material Handling | Mar-05 | 816,888 | 36-60 | FP,HP | |||||||||||||
Ford Motor Company | Material Handling | Jan-05 | 635,834 | 36-60 | FP,HP | |||||||||||||
Ford Motor Company | Material Handling | Feb-05 | 119,461 | 36 | FP,HP | |||||||||||||
General Electric Company / GE Aircraft Engines | Machine Tools | Dec-03 | 6,088,818 | 62-75 | OL, HP | |||||||||||||
Helijet International, Inc. | Helicopters | Apr-04 | 2,680,000 | 60 | OL | |||||||||||||
International Paper Company | Material Handling | May-05 | 1,836,972 | 48-72 | HP,OL |
Past performance is not necessarily indicative of future performance.
A-19
Lease | ||||||||||||||||||
Commence | Acquisition | Percent | Lease | Type | ||||||||||||||
Lessee | Notes | Equipment Type | Date(s) (1) | Cost (2) | Leverage (3) | Term (4) | (5) | |||||||||||
International Paper Company | PMC Cup Machines | Dec-05 | 1,713,600 | 96 | FP | |||||||||||||
International Paper Company | Material Handling Equipment | Jul-05 | 800,567 | 36 - 60 | OL | |||||||||||||
International Paper Company | PMC Cup Machine | Jul-05 | 773,857 | 96 | FP | |||||||||||||
International Paper Company | Material Handling & Loaders | Oct-05 | 652,330 | 60 - 72 | FP,HP | |||||||||||||
International Paper Company | Dozer | Apr-04 | 593,560 | 60 | OL | |||||||||||||
International Paper Company | Wheel Loader, Cat Dozer | Jul-05 | 378,380 | 60 - 72 | HP,OL | |||||||||||||
International Paper Company | Material Handling Equipment | Nov-05 | 323,997 | 60 | HP | |||||||||||||
International Paper Company | Loaders, Material Handling Equip | Aug-05 | 304,404 | 60 - 72 | FP,HP | |||||||||||||
International Paper Company | Lift Trucks, Loader | Jun-04 to Aug-04 | 267,750 | 36 - 60 | HP | |||||||||||||
International Paper Company | Loader, Carrier | Jun-04 | 233,840 | 60 | HP | |||||||||||||
International Paper Company | Deck Crane | Sep-05 | 89,200 | 72 | HP | |||||||||||||
International Paper Company | Washer System | Oct-04 | 26,170 | 48 | FP | |||||||||||||
Kaiser Foundation Hospitals | Information Storage Equipment | Oct-03 | 538,742 | 36 | HP | |||||||||||||
Kaiser Foundation Hospitals | Information Storage Equipment | Nov-03 | 291,390 | 36 | HP | |||||||||||||
Kaiser Foundation Hospitals | Information Storage Equipment | Dec-03 | 110,814 | 34 | HP | |||||||||||||
Kaiser Foundation Hospitals | Information Storage Equipment | Jan-04 | 105,488 | 34 | HP | |||||||||||||
Kaiser Foundation Hospitals | Information Stroage Upgrade | Jun-04 | 33,288 | 29 | HP | |||||||||||||
Kent Ambulance NHS Trust | Ambulance & Emergency Vehicles | Sep-05 | 393,156 | 60 | HP | |||||||||||||
Lafarge North America, Inc. | Forklifts | Jul-04 | 1,091,782 | 36 | OL | |||||||||||||
Lafarge North America, Inc. | Forklifts | Apr-04 | 836,266 | 36 | OL | |||||||||||||
Lafarge North America, Inc. | Forklifts | Apr-05 | 292,968 | 36 | OL | |||||||||||||
Lafarge North America, Inc. | Railcar Mover | Oct-05 | 171,137 | 60 | HP | |||||||||||||
Lightship Holding, Inc. & Lightship | Telecommunications & Office | Jul-04 | 375,000 | 24 | FP | |||||||||||||
Telecom, LLC | Furniture | |||||||||||||||||
Meadwestvaco Corporation | Lumber Milling Equipment | Oct-05 | 4,479,872 | 60 - 84 | HP | |||||||||||||
Meadwestvaco Corporation | Wheel Loader | May-05 | 169,850 | 48 | OL | |||||||||||||
Miasole | Lab & Computer Equipment | Apr-05 | 106,561 | 18 | FP | |||||||||||||
Miasole | Lab Equipment | Jan-05 | 25,692 | 18 | FP | |||||||||||||
New NGC, Inc. dba National Gypsum Company | Cat Tractor & Shovel | Apr-04 | 1,371,097 | 42 - 66 | OL | |||||||||||||
On24, Inc. | Computer Equipment | Jan-05 | 130,409 | 36 | FP | |||||||||||||
On24, Inc. | Computer & Network Equipment | Aug-05 | 127,908 | 36 | FP | |||||||||||||
On24, Inc. | Computer Equipment | Apr-05 | 70,523 | 36 | FP | |||||||||||||
On24, Inc. | Computer Equipment | Sep-04 | 53,317 | 36 | FP | |||||||||||||
OpenPages, Inc. | Computer & Office Equipment | Apr-05 | 290,010 | 36 | FP | |||||||||||||
OpenPages, Inc. | Computer & Office Equip, Furniture | Sep-05 | 174,651 | 36 | FP | |||||||||||||
Overnite Transportation Company | Over-the-road Tractors | Nov-04 | 3,835,450 | 60 | OL | |||||||||||||
Overnite Transportation Company | Over-the-road Tractors | May-04 | 1,543,420 | 60 | OL | |||||||||||||
Overnite Transportation Company | Over-the-road Tractors | Apr-04 | 848,881 | 60 | OL | |||||||||||||
Overnite Transportation Company | Over-the-road Tractors | Jul-05 | 239,082 | 60 | OL | |||||||||||||
Oxfordshire Ambulance Service NHS | Patient Transport Vehicles | May-05 | 419,180 | 60 | FP | |||||||||||||
Oxfordshire Ambulance Service NHS | Ambulance & Emergency Vehicles | Apr-05 | 387,153 | 60 | FP | |||||||||||||
Renal Solutions, Inc. | Senior Term Loan | Aug-05 | 500,000 | 36 | FP | |||||||||||||
Silverpop Systems, Inc. | Networking & Computer Equipment | Sep-04 | 116,986.00 | 24 | FP | |||||||||||||
Silverpop Systems, Inc. | Networking & Computer Equip | Nov-04 | 62,109.00 | 24 | FP | |||||||||||||
Starcite, Inc. | Working Capital Loan | Jul-04 | 175,000 | 24 | NR | |||||||||||||
Sussex Ambulance Service NHS Trust | Ambulance & Emergency Vehicles | Dec-04 | 1,164,624.79 | 60 | HP | |||||||||||||
Sussex Ambulance Service NHS Trust | Ambulance & Emergency Vehicles | Jan-05 | 554,562.80 | 60 | HP | |||||||||||||
Technorati, Inc. | Computer Equip & Office Furniture | Oct-05 | 150,000.00 | 36 | FP | |||||||||||||
The Sabine Mining Company | Draglines | Nov-04 | 12,650,961.00 | 62 | OL | |||||||||||||
Washington Group International, Inc. | Mining Equipment | Oct-05 | 4,846,808.00 | 60 - 84 | FP | |||||||||||||
ATEL Capital Equipment Fund X total: | $ | 77,647,597 | ||||||||||||||||
TOTAL OF ALL FUNDS: | $ | 466,291,298 | ||||||||||||||||
Past performance is not necessarily indicative of future performance.
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TABLE VI ACQUISITION OF EQUIPMENT FOOTNOTES
(1) | In many cases, a Lease transaction is funded over a period of time according to the Lessee’s requirements. Therefore “Commencement Date(s)” expressed as a range represents multiple commencement dates occurring or anticipated under the same Lease line. | |
(2) | “Acquisition Cost” includes either amounts committed to Lessees for funding by the program, or the actual Equipment acquisition cost, less any Acquisition Fees. All figures are rounded. | |
(3) | “Percent Leverage” represents the percent ratio of the original principal amount of the debt acquired or assumed by the program, to the Acquisition Cost of the Equipment. The Equipment may be “leveraged” (where a portion of the Equipment Acquisition Cost is financed using non-recourse debt financing) at the time of, or subsequent to, the acquisition of the Equipment by the program. Therefore, actual leverage ratios may be more or less than indicated due to the timing of the acquisition of the Equipment in relation to the amortization of the principal amounts of the debt. | |
(4) | “Lease Term” is expressed in terms of months, although the actual Lease Term may be expressed as monthly, quarterly, semiannual or annual. | |
(5) | A designation of “FP” indicates that the aggregate rents to be received during the Term equal or exceed the Acquisition Price of the Equipment. A designation of “HP” indicates that the aggregate rents to be received during the Term equal or exceed 90% of the Acquisition Price of the Equipment. A designation of “OL” indicates that the aggregate rents to be received during the Term are less than 90% of the Acquisition Price of the Equipment. A designation of “NR” indicates that the transaction is a note receivable. | |
(6) | A division of Waban, Inc. | |
(7) | Aircraft is based out of the Republic of Finland. | |
(8) | Lessee is General Electric Company, by its division GE Aircraft Engines. | |
(9) | Lessee is General Electric Company, by its division GE Plastics. | |
(10) | Asset is held in a trust. A 20% beneficial interest in the trust is held by Fund 7, with the remaining 80% beneficial interest in the trust held by Fund 8. | |
(11) | Guaranteed by Omnicom Group, Inc. Actual lessees are various subsidiaries of Omnicom Group Inc.: The DDB Needham Worldwide Communications Group Inc.; Griffin Bacal Inc.; DDB Needham Chicago, Inc.; DDB Needham Dallas, Inc.; PGC Advertising, Inc.; The Focus Agency, LP.; Elgin DDB Inc.; Group Management Services and TLP, Inc. | |
(12) | Asset is held by a special purpose entity. Acquisition cost represents 51% of the total cost. The remaining 49% is owned by an unaffiliated program but continues to be managed by an affiliate. | |
(13) | Guaranteed 40% by Seacor Smit, Inc. and 60% by Transportacion Maritima Mexicana. | |
(14) | Asset is held in a trust. A majority beneficial interest in the trust is held by the program, with the remaining beneficial interest in the trust held by an unaffiliated program managed by an affiliate. | |
(15) | Assets are on short-term sub-leases with various sub-lessees. | |
(16) | Guaranteed by Williams Companies, Inc. | |
(17) | Asset held in a trust with Bank of New York as Trustee. Two distinct beneficial interests in the trust estate, representing an aggregate 42.5% interest of the total trust estate, purchased in two separate transactions. The remaining 57.5% of the trust estate is owned by an unaffiliated institutional investor. Trustee may only act upon unanimous instructions of all beneficial owners in the trust estate. | |
(18) | Guaranteed by CVS Corporation. | |
(19) | Lessee is acting through its division, GE Engine Services, Inc. | |
(20) | Guaranteed by SEACOR Smit Inc. Graham Offshore LLC changed from Graham Offshore, Inc on December 31, 2003. Seacor Marine LLC changed from Seacor Marine, Inc. on December 31, 2003. | |
(21) | Guaranteed by General Electric Company acting through its division GE Aircraft Engines operating division. | |
(22) | Merged with and now named Infiniroute Networks as of April 2004. | |
(23) | Lessee filed for protection under Chapter 11 of the U.S. Bankruptcy Act. All original lease payments were made. The lease was assumed by Vanguard Car Rental on November 11, 2003. | |
(24) | Name changed to LaFarge North America, Inc. |
Past performance is not necessarily indicative of future performance.
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