Stonebriar Commercial Finance Issues $227MM of Fixed-Rate Reset Cumulative Preferred Shares

Stonebriar Commercial Finance issued and sold $227 million of Series A 7.5% fixed-rate reset cumulative preferred shares in a private offering.

The preferred shares, rated “BB” by DBRS, were issued to a group of qualified institutional buyers and will trade under the ticker “STBRCF.” They are perpetual, callable after five years and will pay semi-annual dividends to investors beginning in October.

RBC Capital Markets served as structuring advisor, billing and delivery agent and joint bookrunning manager. BofA Securities also served as joint bookrunning manager. BNP Paribas, Citizens Capital Markets, Fifth Third Securities and MUFG Securities Americas served as co-managers on the placement.   U.S. Bank served as calculation agent, paying agent, registrar and transfer agent for the preferred shares.

“The preferred shares represent another milestone in Stonebriar’s ongoing development of efficient and sustainable sources of capital,” Dave B. Fate, CEO of Stonebriar Commercial Finance, said. “Along with our new $200 million unsecured revolving credit facility and $1 billion non-recourse warehouse facility, the preferred shares provide a strong foundation for the company’s continued growth and strategic initiatives. Strong market reception for the preferred shares allowed us to significantly upsize the issuance while still achieving attractive pricing. This offering is a testament to the quality of our business and our disciplined approach to underwriting and risk management.

“The team at RBC Capital Markets did a great job structuring and marketing the preferred shares from start to finish. We very much appreciate the team’s work and focus on this transaction and believe Stonebriar is extremely well-positioned to continue to provide our customers with the capital and structuring solutions they need heading into 2022.”

Stonebriar Commercial Finance intends to use proceeds from the issuance of the preferred shares for general corporate purposes. Akin Gump Strauss Hauer & Feld represented Stonebriar Commercial Finance on the transaction. Cravath, Swaine & Moore represented the initial purchasers.

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