North Mill Equipment Finance Acquires Pawnee Leasing in Major Expansion Move



North Mill Equipment Finance (NMEF) has completed its acquisition of Pawnee Leasing Corporation and certain other assets from an affiliate of Chesswood Group Limited pursuant to final approval from the U.S. Bankruptcy Court for the District of Delaware as a result of a court-supervised Sale and Investment Solicitation Process initiated in Canada in December 2024. NMEF acquired substantially all of Pawnee’s assets, while certain excluded assets and liabilities were transferred to a newly formed entity, which will remain subject to Canadian and U.S. restructuring proceedings.

With the addition of the Pawnee portfolio of leases and loans, NMEF’s total gross receivables under management now exceed $2 billion, marking a significant milestone in the company’s growth trajectory. The Pawnee and Tandem brand names will be retired, and no new originations will occur under Pawnee’s former referral partner programs. The servicing of Pawnee’s managed investment partnerships has been transferred to NMEF. More than half of Pawnee’s former employees are joining NMEF and will be located mostly in Ft. Collins, Colorado. These highly skilled professionals—primarily in Collections, Legal Recoveries, Data Analytics, Customer Service, and Accounting—demonstrated exceptional resilience and dedication throughout a challenging transition.

“We are thrilled to finally complete the acquisition of Pawnee after years of discussions with Chesswood,” David C. Lee, chairman and CEO of NMEF, said. “Pawnee has been in business for over 40 years and was the gold standard for referral partner-based small-ticket equipment financing—so much so that we modeled many aspects of NMEF’s business strategy around Pawnee following our recapitalization in 2018. Through no fault of Pawnee’s first-rate management team, the company endured financial distress when Chesswood filed for creditor protection in Canada and Delaware in late 2024, ultimately resulting in the court- sanctioned sale to NMEF.”

“The acquisition of Pawnee is immediately accretive to NMEF,” Mark Bonanno, president and chief revenue officer of NMEF, said. “We successfully refinanced approximately 50% of Pawnee’s assets at significantly improved cost of funds and leverage levels, driving an attractive return on equity for our stakeholders.”

“We went from court approval to closing in just over three weeks which was only made possible by the incredible collaboration between our companies,” Tom Lyle, executive vice president and chief operating officer, said. “I couldn’t be more impressed by how our two teams, aligned around a common goal, came together and delivered. I have the highest respect for the former Pawnee team and am excited to welcome them into the NMEF family – stronger together.”

Truist Securities, Inc. acted as exclusive U.S. financial advisor to NMEF, while Oaklins Canada served as NMEF’s Canadian financial advisor. Legal counsel for NMEF was provided by Moore & Van Allen (U.S.) and Blake, Cassels & Graydon LLP (Canada). FTI Consulting Canada Inc. served as the court-appointed Monitor of Chesswood, including Pawnee. Legal counsel for the Monitor was provided by Osler Hoskin and Harcourt LLP (Canada), Alston & Bird LLP (U.S.), and Young Conaway Stargatt & Taylor LLP (Delaware).


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