GreatAmerica Financial Services Closes 20th Term Securitization

GreatAmerica Financial Services completed a term securitization of $631.5 million in privately placed bonds with institutional investors, marking the company’s 20th such securitization. GreatAmerica uses proceeds from its securitizations to pay off debt in its warehouse and credit facilities and to support future originations and business operations.

Demand for GreatAmerica bonds came in the form of 55 orders placed for more than five times the amount offered ($3.3 billion in orders for $632 million in bonds). This eclipsed the record 3:1 demand for the company’s 19th securitization in February 2020. In a repeat of the last three years’ term securitizations, 93.4% of the bonds were rated AAA. There were 28 unique investors, including three new investors. GreatAmerica has issued more than $7.5 billion in bonds since 1995.

“This is essentially a report card that grades our operational strength,” Tony Golobic, chairman and CEO of GreatAmerica, said. “The demand for our bonds from institutional investors is a great affirmation of the consistency we continue to bring to the small-ticket segment and a testament to the hard work of our team members.”

The Standard and Poor’s presale report said GreatAmerica “is distinct from many other small ticket equipment leasing companies because it benefits from long tenure and senior management continuity.”

Additionally, the Fitch presale report mentioned “strong and consistent earnings in terms of both ROA and ROE over the past decade and through periods of economic declines” and “consistency of operating performance and asset quality” in its assessment of GreatAmerica’s operational strengths.

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