Chesswood Group’s largest subsidiary, Pawnee Leasing, closed a $250 million warehouse facility to fund its growing prime portfolio. The warehouse facility will hold Pawnee’s prime receivables before they are securitized and provides an improved cost of capital and better advance rate than the company’s revolving facility, which was primarily structured for non-prime commercial leases and loans and will continue to be utilized for those originations.
Established in 1982, Pawnee specializes in equipment leasing and financing for assets up to $250,000, for a full range of credit profiles to small businesses across the U.S. including start-up entrepreneurs and more established businesses in the A, B, and C credit market segments.
“Our consistent growth since 2009 has driven the evolution of our treasury resources,” Barry Shafran, Chesswood’s president and CEO, said. “That began with our corporate revolving facility in late 2014 that expanded our access to capital and is now complemented by this additional facility which better meets the needs of our U.S. prime business, launched in 2015.”
“We began this process months ago, with Royal Bank of Canada as our lead partner once again,” Mike Prenzlow, Pawnee’s CFO, said. “We were very happy to also include Bank of Montreal and SunTrust as the other two members of the loan syndicate. Both RBC and Bank of Montreal are also our partners in Chesswood’s revolving credit line and we’re grateful for the continued support they have shown Chesswood and Pawnee through their participation in this second facility.”
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