GreatAmerica Completes $612.2MM Securitization

Independent small ticket national commercial equipment finance company GreatAmerica Financial Services completed its 18th term securitization of $612.2 million in privately placed bonds with institutional investors.

GreatAmerica used proceeds from the securitization to pay off debt in its warehouse and credit facilities in order to support continuous growth.

“This transaction represents our largest securitization to date and is a testament to the strength and consistency of our growth and our portfolio performance,” said GreatAmerica Chairman and CEO Tony Golobic. “We are very pleased to have such high demand for our bond issuance, including from several new investors.”

Investor demand was three times greater than the amount offered, with nearly $2 billion in orders for $612.2 million in bonds. All told, 56 orders were placed among 35 unique investors, seven of whom participated for the first time. Additionally, 93.4% of the bonds issued were rated AAA.

GreatAmerica is a regular issuer of bonds in the asset-backed securities market, placing more than $6.2 billion since 1995. According to S&P Global Ratings presale report, “GreatAmerica is distinct from many other small-ticket leasing companies in that it has continued to grow its portfolio, even during downturns in the economic cycle.”

Similarly, the Fitch presale report noted GreatAmerica’s strengths as “strong and consistent earnings in terms of both ROA and ROE over the past decade and through periods of economic downfall, GreatAmerica’s experience as servicer on prior transactions and consistency of operating performance and asset quality.”

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