SUPPLEMENT NO. 1
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
Supplement dated April 30, 1997 to prospectus dated November 29, 1996 of ATEL
Capital Equipment Fund VII, L.P. (the "Fund"). The following is an update to the
equipment acquisition summary in the prospectus reflecting all lessees and
equipment leased through April 30, 1997.
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Chrysler Corporation
Moody's Credit Rating A3
Lease Financing of Material Handling Equipment
Lease Term 5 years
Equipment Cost(1)
Lease Commitment: $1,032,628
Funded to Date: $982,293
Commencement Date of Lease October to December 1996
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Mobil Business Resources Corp.
Moody's Credit Rating Aa2
Lease Financing of Helicopters
Lease Term 3 years
Equipment Cost(1) Fully Funded: $1,650,000
Commencement Date of Lease November 1996
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Burlington Northern Railroad Co.(2)
Moody's Credit Rating Aa1
Lease Financing of Locomitives
Lease Term 13 months
Equipment Cost(1) Fully Funded: $5,010,960
Commencement Date of Lease December 1996
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General Electric Corporation
Moody's Credit Rating Aaa
Lease Financing of Blow Molding Machine
Lease Term 2 years
Equipment Cost(1) Fully Funded: $906,370
Commencement Date of Lease January 1997
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International Paper Company
Moody's Credit Rating A3
Lease Financing of Trackmobile
Lease Term 5 years
Equipment Cost(1) Fully Funded: $248,952
Commencement Date of Lease January 1997
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Illinois Central Railroad Co.(3)
Moody's Credit Rating Baa2
Lease Financing of Railcars
Lease Term 3 years
Equipment Cost(1) Fully Funded: $1,610,000
Commencement Date of Lease January 1997
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Cargill, Inc.(3)
Moody's Credit Rating Aa3
Lease Financing of Covered Hopper Railcars
Lease Term 6 years
Equipment Cost(1) Fully Funded: $6,534,000
Commencement Date of Lease January 1997
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National Steel Corporation
Moody's Credit Rating Ba3
Lease Financing of Dozer Tractors
Lease Term 5 years
Equipment Cost(1) Fully Funded: $734,730
Commencement Date of Lease April 1997
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General Electric Corporation
Moody's Credit Rating Aaa
Lease Financing of Spectrometers
Lease Term 5 years
Equipment Cost(1) Fully Funded: $306,545
Commencement Date of Lease March 1997
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Southern Illinois Railcar Company(3)
Lease Financing of Covered Hopper Railcars
Lease Term 4 years
Equipment Cost(1) Fully Funded: $462,000
Commencement Date of Lease January 1997
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Minteq International, Inc.
Lease Financing of Laser Measuring Machine
Lease Term 3 years
Equipment Cost(1) Fully Funded: $689,350
Commencement Date of Lease January to March 1997
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International Paper Company
Moody's Credit Rating A3
Lease Financing of Wheel Loaders
Lease Term 4 years
Equipment Cost(1) Fully Funded: $417,700
Commencement Date of Lease January to February 1997
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International Paper Company
Moody's Credit Rating A3
Lease Financing of Knuckle Boom Loader
Lease Term 6 years
Equipment Cost(1) Fully Funded: $213,095
Commencement Date of Lease February 1997
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General Electric Corporation
Moody's Credit Rating Aaa
Lease Financing of Trackmobile
Lease Term 5 years
Equipment Cost(1) Fully Funded: $166,602
Commencement Date of Lease March 1997
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Sisseton Milbank Railroad(3)
Lease Financing of Covered Hopper Railcars
Lease Term 3 years
Equipment Cost Fully Funded: $330,000
Commencement Date of Lease January 1997
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Columbus & Greenville Railroad(3)
Lease Financing of Railcars
Lease Term 16 months
Equipment Cost(1) Fully Funded: $667,000
Commencement Date of Lease January 1997
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Signature Flight Support Corporatiom
Lease Financing of Fuel Trucks
Lease Term 11 years
Equipment Cost(1) Fully Funded: $760,000
Commencement Date of Lease April 1997
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Tarmac America, Inc.(4)
Lease Financing of Wheel Loaders
Lease Term 18 months
Equipment Cost(1) Fully Funded: $350,000
Commencement Date of Lease April 1997
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National Steel Corporation
Moody's Credit Rating Ba3
Lease Financing of Dozers and Loaders
Lease Term 5 years
Equipment Cost(1) Fully Funded: $2,985,284
Commencement Date of Lease July 1997
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Sematec, Inc.
Lease Financing of Manufacturing Equipment
Lease Term 3 years
Equipment Cost(1) Lease Commitment:$3,703,600
Funded to Date: $840,000
Commencement Date of Lease July to August 1997
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International Paper Company
Moody's Credit Rating A3
Lease Financing of Material Handling Equipment
Lease Term 5 Years
Equipment Cost(1) Lease Commitment: $73,195
Commencement Date of Lease 1997
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Omnicom Group, Inc.(5)
Moody's Credit Rating Baa2
Lease Financing of Furniture & Fixtures
Lease Term 5 years
Equipment Cost(1) Lease Commitment: $1,400,000
Commencement Date of Lease 1997
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International Paper Company
Moody's Credit Rating A3
Lease Financing of Construction and Logging & Lumber Equipement
Lease Term 5 to 6 years
Equipment Cost(1) Lease Commitment: $650,008
Commencement Date of Lease 1997
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Maxtor Corporation(6)
Lease Financing of Manufacturing Equipment
Lease Term 3 years
Equipment Cost(1) Lease Commitments: $10,000,000
Commencement Date of Lease 1997
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Minteq International, Inc.
Lease Financing of Manufacturing Equipment
Lease Term 3 years
Equipment Cost(1) Lease Commitment: $653,950
Commencement Date of Lease 1997
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National Steel Corporation
Moody's Credit Rating Ba3
Lease Financing of Mining Equipment
Lease Term 4 to 5 years
Equipment Cost(1) Lease Commitment: $4,279,986
Commencement Date of Lease 1997
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ATEL Capital Equipment Fund VII
Total Equipment Cost(as of April 30, 1997)
Funded to Date: $25,864,881
Commitments to be Funded: $19,971,074
Total Cost: $45,835,955
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(1) The "equipment cost" for each of the Fund's lease transactions may reflect a
fully funded acquisition, a partially funded commitment or a lease commitment
which has not yet been funded. Transactions for which the equipment cost is
characterized as "fully funded" reflect the actual amount invested in the
transaction as of the date hereof, and no further funding is anticipated for
these transactions. The equipment cost for partially funded transactions is
described by the full lease commitment and the amount actually funded as of the
date hereof. For transactions which have not yet been funded, the equipment cost
reflects only the lease commitment. For those leases which are not fully funded
as of the date hereof, the amount of the lease commitment and the stated range
of commencement dates of the lease represent the Fund Manager's best estimate as
to the ultimate size and timing of the transaction, based on the Fund's lease
commitment to the lessee, its discussions with the lessee regarding funding
requirements and timing, the current and anticipated availability of Fund
capital and other factors. There can be no assurance, however, that any portion
of a transaction which has not yet been funded will be completed as described.
(2) A portfolio purchased from LPCA (a wholly-owned subsidiary of GATX
Corporation). Lease term represents the remaining months of the existing lease
contract.
(3) A portfolio purchased from MRX Corporation. Lease term represents the
remaining months of the existing lease contract.
(4) Co-lessee with Tarmac Mid-Atlantic, Inc. Lease is guaranteed by Tarmac PLC.
(5) Guaranteed by Omnicon Group, Inc. Actual Lessees are various
subsidiaries of OmnicomGroup, Inc.; DDB Needham Worldwide, Inc.; Griffin Bacal,
Inc.; DDB Needham Chicago, Inc.; Tracey-Locke, Inc.; Puskar Gibbon Chapin, Inc.;
The Focus Agency Inc.; and Elgin Syferd/DDB Needham, Inc.
(6) Guaranteed by Hyundai Electronics.
Status of the Offering
As of January 6, 1997, the Fund had received and accepted subscriptions for
120,000 Units. As a result, the escrow condition was met and the subscription
proceeds were released to the Fund.
As of April 30, 1997, the Fund had received and accepted subscriptions for
2,202,797 units for total subscriptions in the amount of $22,027,970. As of this
date, the Fund had committed all of such proceeds to equipment costs, offering
and organization expenses and capital reserves.