Stonebriar Completes $150MM Offering of Unsecured Notes

Stonebriar Commercial Finance closed a private issuance of $150 million aggregate principal amount in notes due 2024 initially assigned a “BBB (low)” rating by DBRS.

The notes are unsecured and bear an interest rate of 4.75% per year, payable semiannually and will mature on October 16, 2024. The notes may be redeemed in whole or in part at any time or from time to time at the company’s option plus a premium, if applicable.

The company expects to use the net proceeds from this offering to pay down existing indebtedness and for other general corporate purposes.

Dave B. Fate, president and CEO of Stonebriar, commented, “The successful issuance of the notes marks the continuation of Stonebriar’s efforts to grow and diversify its funding sources. The notes help to further reduce the company’s balance sheet interest rate risk and to provide access to an additional group of institutional investors. We expect to become a programmatic issuer in this marketplace. We appreciate the leadership demonstrated by Bank of America in this inaugural issuance.”

“The Stonebriar team continues to expand the investor base and position the business for growth over the long term,” said Tony Minella, co-founder and president of Eldridge Industries. “Today’s announcement marks another important milestone for the company, which has increased enterprise value substantially since its formation in 2015.”

Bank of America Securities acted as the sole placement agent, and Vedder Price provided legal counsel to the company for this offering.

Based in Plano, TX, Stonebriar is an Eldridge Industries’ business which provides financing solutions for businesses in a wide variety of industries, of various sizes and credit profiles. It leases and finances assets located primarily in North America and select other jurisdictions worldwide currently through 5 distinct platforms—general equipment, aviation capital, rail leasing, real estate and sponsor finance.

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