GreatAmerica Financial Services completed its 21st issuance of $513.8 million in privately placed bonds with institutional investors. This issuance of asset-backed bonds secured by a pool of leases followed an earlier placement of $631.5 million in February of this year.
“We chose to issue twice this year — a first for us — and borrow for future funding needs to take advantage of the very favorable borrowing conditions,” Tony Golobic, executive chairman of GreatAmerica Financial Services, said. “Our strong and consistent operating performance powered by engaged and dedicated employees is a big reason for the strong investor demand.”
More than $2 billion in orders were placed, which was nearly four times the amount of bonds offered. A company record of 30 unique investors participated, including four new investors that had previously not participated in GreatAmerica’s transactions. Inception-to-date bond issuances for the company now total $8.1 billion.
According to S&P Global Ratings’ presale report, “The company is distinct from many other small-ticket equipment leasing companies because it benefits from long tenure and senior management continuity.” The report also stated that “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, while maintaining its losses and delinquencies at relatively low and historically consistent levels.”
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