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Securities and Exchange Commission
Washington, D.C. 20549
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FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 29, 1999
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Westar Financial Services Incorporated
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(Exact name of registrant as specified in its charter)
Washington 2-95465-S 91-17115252
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
505 E. Union, #300, Olympia, Washington 98501
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (306) 754-6227
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(Former name or former address, if changed since last report)
Item 5. Other Events
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In compliance with the requirements of Item 304 of Regulation S-K, the
Registrant makes the following disclosures with other significant events:
WESTAR FINANCIAL FINALIZES FUNDING FOR E-COMMERCE SITE
FIRST UNION TO PROVIDE UP TO $1 BILLION ANNUALLY FOR E-COMMERCE LOANS
Olympia, WA and Charlotte, NC July 29, 1999 -- Westar Financial Services
Incorporated (OTC: WEST) announced today that it has finalized an agreement
with First Union Capital Markets Group for a facility of up to $1 billion to
fund prime-credit auto loans generated through Westar's entry into e-commerce
auto financing.
Under the terms of the agreement, First Union will provide up to $1 billion
annually to support the loan demand for the automotive transactions generated
by Westar. First Union will purchase from Westar up to $1 billion in loans
per year over the next 3 years and has imposed minimum performance standards
of at least $100 million in originations during the first year, $150 million
in the second year, and $200 million in the third. The $1 billion agreement
with First Union is limited to prime credit loans. First Union Capital
Markets Group is part of First Union Corporation (NYSE: FTU).
"We are delighted to be able to initiate our e-commerce business with such a
substantial resource commitment from one of the most highly respected
financial institutions in the nation," stated R. W. Christensen, Jr.,
Westar's President and CEO. "We also are finding that all of the professional
people working on this project are very knowledgeable about the auto business
and have strong ties to the industry, which we believe gives us a competitive
advantage in the emerging automotive e-commerce arena. This arrangement not
only offers avenues for expanding our prime credit auto lease business into
geographic areas where we currently have no dealer partners, it also opens an
entire new avenue for revenues from loan origination fees."
Westar's affiliated site is slated to launch this quarter in limited areas,
and will be available nationwide within six months. While First Union will
purchase from Westar auto loans generated through the site, Westar will fund
and hold all prime-credit leases originated through the channel.
First Union (NYSE: FTU) is a leading provider of financial services to more
than 16 million customers throughout the East Coast and the nation. At June
30, 1999, First Union had assets of $230 billion and total stockholders'
equity of $16 billion. Through its banking subsidiaries, the company operates
full-service banking offices in Connecticut, Delaware, Florida, Georgia,
Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Carolina,
Tennessee, Virginia and Washington, D.C.
Westar Financial Services Incorporated (OTC: WEST) is an innovative,
fast-growing, Washington-based automobile financing company. It has focused
solely on the prime-credit segment of the $110 billion auto-lease finance
market and has completed ten securitizations of
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auto lease receivable certificates for the prime credit market. Westar is the
only publicly-traded automobile lease finance company focused solely on this
huge market.
STATEMENT REGARDING "FORWARD LOOKING STATEMENTS": STATEMENTS CONCERNING FUTURE
PERFORMANCE, DEVELOPMENTS OR EVENTS, INCLUDING THE ABILITY TO PENETRATE NEW
MARKETS AND CAPTURE MARKET SHARE, GAIN PRODUCT ACCEPTANCE, ACHIEVE
TECHNOLOGICAL SUCCESS, WORK WITH ALLIANCE PARTNERS TO MEET SCHEDULES AND
DELIVER SERVICES, OR ANY OTHER GUIDANCE ON FUTURE PERIODS, CONSTITUTE
FORWARD-LOOKING STATEMENTS WHICH ARE SUBJECT TO A NUMBER OF RISKS AND
UNCERTAINTIES WHICH MIGHT CAUSE ACTUAL RESULTS TO DIFFER FROM STATED
EXPECTATIONS.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Westar Financial Services Incorporated
(Registrant)
/s/ Cindy A. Kay
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Cindy A. Kay
Controller
