Ready to Borrow at LIBOR + ? Ready for the Best Loan Terms in the World ?

NEWS RELEASE

FOR IMMEDIATE RELEASE

Ready to Borrow at LIBOR +?
Ready for the Best Loan Terms in the World?

Marina Del Rey, CA – July 2, 2001 – Global Capital Resources, LLC is an International Private Lender and Financier. The company underwrites, executes, and administers Private Placements of major loans from US$1,000,000 – US$500,000,000 or more, for any legitimate purpose, with repayment terms up to 7 years or longer, to qualified borrowers worldwide. The fixed or floating interest rate is tied to the London Interbank Offered Rate (LIBOR) at simple interest - not compounded interest - with semi-annual payments of interest only due at the end - not the beginning - of each 6-month repayment period ("interest only in arrears"). The loan principal amount is due in full at the end of the loan term, and there are no loan covenants or restrictions on the borrower's use of proceeds. Loan funds under US$50,000,000 may be disbursed in a single lump sum - always without progress payments - within 7-14 days of underwriting completion which takes usually 2 weeks or less. Larger amounts are disbursed incrementally every 5-7 days. "Our mission is to quickly reward our clients with the most attractive and beneficial loan terms and conditions obtainable anywhere," explains President and CEO, Scott H. Brett.

The company's Private Lending Services empower clients to rapidly seize emerging business and financial opportunities by readily accessing loan funds with easy-to-understand documents, easy-to-follow underwriting procedures, and absolutely no lender interference. In fact, only two simple letters are required to start a loan transaction, and loan documents are unusually clear, uncomplicated, short, and minimal in number.

Global Capital Resources is an excellent alternative to raising funds in the traditional commercial lending, investment banking, and capital markets due to their hugely attractive rates and terms and uncommon speed with which clients receive the loan proceeds. For borrowers using these services, the cost of capital is substantially lower than that of conventional sources, and clients realize significant benefits including material interest savings and greatly enhanced financial agility.

For comparison of base interest rates, Global Capital utilizes the LIBOR, which is quoted from 3 months to 5 years versus other traditional banking and lending sources which generally use the Prime Rate currently at 6.75%. The LIBOR for floating rate transactions from 1-5 years is currently about 3.70%. This substantially beats Prime by more than 3.00% per year, which translates into a $30,000+ annual interest savings on a $1,000,000 loan. The borrower's loan interest rate is LIBOR plus a margin percentage or spread. The typical margin falls within the range of .50% to .75%.

Corporations, partnerships, multi-national companies, institutions, municipalities, and foreign government agencies comprise the firm's client base. Funds may be used for any lawful purpose including, but not limited to, acquisitions, working capital, refinancing of existing debt, plant expansion, and infrastructure.

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According to Mr. Brett, "Global Capital's services are particularly beneficial in the current economic climate to finance downsizing and divestitures and promote long-term cost-efficiencies for public and private sector clients."

In addition to the robust terms and conditions outlined above are a possible grace period up to 2 years at the start of the loan with no principal or interest due (moratorium with deferred payments), possible loan extension, possible no-prepayment-penalty, and absolutely no advance fees. The one-time-only loan fee is always withheld from the proceeds when disbursed and never paid prior to disbursement. Moreover, the client may use its own custom-crafted repayment schedule.

To qualify, the borrower must provide an irrevocable and unconditional Financial Guarantee usually in the form of a Standby Letter of Credit or Letter of Guarantee from a top-rated commercial bank to assure loan repayment to the company's lending group. The Guarantee fully eliminates the risk of default, allowing Global Capital to reward clients with extraordinary terms and conditions that are not otherwise available.

The company requires Financial Guarantees only and doesn't accept collateral to secure loan repayment. A client that has collateral should pledge it directly to an accepted major bank to secure the bank's issuance of a Standby Letter of Credit (U.S. and foreign banks) or Letter of Guarantee (foreign banks only) in favor of Global Capital's lending group. The margin percentage, that is added to the LIBOR to determine the borrower's loan interest rate, is based on the financial strength of the bank or other accepted guarantee issuer; thus, the stronger the bank or guarantee issuer, the lower the margin.

Other accepted forms of guarantee include Letter of Insurance Guarantee (A.M. Best, top-rated insurance companies), Sovereign Guarantee of an accepted foreign country, or Promissory Notes co-guaranteed by an accepted major bank. Unsecured Promissory Notes of profitable substantial companies, such as Fortune 500 firms and the like, are readily accepted as the guarantee. Major institutions, such as Colleges, Universities, Pension Funds, Endowments, Foundations, and Trusts and accepted Municipalities and Municipal Agencies may issue a special unsecured Bond Guarantee.

The most frequently asked question by prospective clients is "Why should I secure a guarantee from my bank and borrow from Global Capital when I can easily borrow directly from my bank without a guarantee?" The answer is simple…because the bank cannot lend the money with terms and conditions as attractive as GCR's. The bank must always account for the risk of default. The guarantee eliminates it. This is how GCR saves money for clients.

Mr. Brett sums it up this way: "Our job is to save lots of money for our clients and deliver unparalleled flexibility. We show them how to realize tremendous interest savings in comparison to traditional commercial loans. We also enable them to avoid loan covenants, restrictions, progress payments, and other ever-present burdens that cost them money, stifle their motivation, and hinder their initiative. We always strive to maximize the value of each client's benefits."

Global Capital Resources and its affiliated, international network of private lenders based in Europe have been delivering quintessential private lending and export trade financing services worldwide for more than 40 years.

Contact:
Scott H. Brett, President & Chief Executive Officer
libor0001@earthlink.net
Phone: (818) 216-7803 / FAX: (707) 667-7786
Global Capital Resources, LLC / 13428 Maxella Avenue, Suite 493 / Marina del Rey, CA 90292




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