Chesswood Group exercised the remaining $50 million accordion feature in its existing corporate revolving credit facility, increasing the facility to $250 million to support continued growth in its Pawnee Leasing portfolio.
The facility matures in December 2019 and Chesswood has drawn $188 million under the facility as of August 29, 2017.
“Our U.S. prime portfolio continues to grow as expected. At the same time we have been working towards our first U.S. non-recourse asset backed facility for this portfolio segment,” said Barry Shafran, Chesswood’s president and CEO. “The new non-recourse facility, expected to close in late September or early October, will further diversify our treasury and match our funding structures with our portfolio composition,” added Shafran.
Chesswood’s overall leverage remains modest following the sale of its two non-core finance businesses over the last eighteen months and the subsequent pay-down of its credit facility with the majority of the proceeds. The company is well positioned to support its portfolio growth while continuing to provide shareholders with an attractive yield.
The company’s syndicate of six banks is led by Royal Bank of Canada and includes BBVA Compass, Bank of Montreal, National Bank of Canada, TD Securities and Laurentian Bank of Canada.
“Our lenders have continued to provide strong support for our growth efforts in both the U.S. and Canada. We’re grateful for that partnership and the vote of confidence it represents,” said Shafran.
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