GreatAmerica Financial Services closed on its 24th term securitization with $655.26 million of privately placed bonds. S&P Global Ratings and Fitch Ratings rated 93.4% of the bonds in the transaction as AAA, unchanged from the prior seven transactions from GreatAmerica. To date, GreatAmerica bond issuances have totaled $9.9 billion.
“We are very pleased with the execution of our latest bond offering. Our company culture and track record of strong performance have enabled us to consistently access the debt markets and achieve desirable results,” Martin Golobic, CEO of GreatAmerica, said. “We owe it to our GreatAmerica team members for their tireless approach towards quality, expertise and value in helping our customers achieve greater success.”
GreatAmerica will use proceeds from the transaction to pay off outstanding warehouse and revolving credit facility debt. A January 2024 S&P Global Ratings pre-sale report stated: “GreatAmerica is distinct from many other small-ticket leasing companies in that it has generally continued to grow its portfolio, even during downturns in the economic cycle … the company is distinct from many other small-ticket equipment leasing companies because it benefits from long tenure and senior management continuity.”
Investor interest in this transaction was strong, as evidenced by more than $2.5 billion in orders placed, 3.8 times the amount of bonds offered. There were 43 unique investors that participated in the bond transaction, including five new investors.
