North Mill Equipment Finance (NMEF), a commercial equipment lender and lessor, has closed its ninth asset-backed securitization (ABS), NMEF Funding 2025-A, a $410 million transaction. The securitization reflects strong investor confidence, capital diversification and a continued shift toward higher credit-quality assets.
Investor appetite was strong, with 42 orders across 31 unique investors, including participation from eight new institutional investors. The notes were 5.7 times oversubscribed at the final pricing test, despite competing with five other equipment securitization issuances in the market. Demand strength allowed NMEF to significantly tighten spreads from launch to pricing, closing at a 30 basis point improvement compared to its previous 2024-A transaction.
“NMEF 2025-A’s overwhelming reception underscores the trust and confidence investors have in our platform,” Mark Bonanno, president and chief revenue officer of NMEF, said. “We continue to see growing interest from institutional investors, as evidenced by the number of new participants in this transaction. Our ability to successfully execute this deal in a crowded issuance calendar speaks to the strength of our business model and the continued evolution of our asset base.”
“For the first time, an NMEF securitization was rated by Fitch, alongside Moody’s and KBRA, marking a significant milestone in ongoing growth and credit expansion.” Mitch Tobak, vice president of corporate development at NMEF, said. “This transaction also underscores our continued diversification of collateral types, with freight transportation now representing less than 15% of the collateral pool — compared to over 50% in the 2019-A issuance. At the same time, we are moving up the credit spectrum, with over 50% of the collateral in Tier 1, our highest credit grade, and 24% being corp-only transactions. These improvements reinforce our ability to access capital efficiently while maintaining high credit quality.”
