Verdant Commercial Capital closed its initial 144a term securitization, VERD 2023-1, which issued notes totaling $251.253 million that are backed by a portfolio of equipment leases and loans collateralized by primarily material handling equipment, vocational trucks and other industrial and manufacturing equipment with an average remaining individual contract balance of approximately $132,200.
The five classes of notes issued were rated by both Moody’s and Kroll Bond Rating Agency, with $220.7 million of the notes rated P-1/K-1+ and Aaa/AAA by the respective rating agencies. The VERD 2023-1 issued notes were three times oversubscribed and received orders from 22 investors.
“Our initial 144a issuance is another important step forward in executing our capital strategy,” Robert Moskovitz, CFO of Verdant Commercial Capital, said. “The great success of this offering was validated by robust investor receptivity. It is unprecedented to have a first-time issuer receive ratings from both Moody’s and Kroll.”
Verdant Commercial Capital plans to be a recurring issuer and the term securitization vehicle will be a component of the company’s liquidity to support lease and loan origination growth.
“We are pleased with the confidence investors have shown in Verdant and the successful issuance of our inaugural 144a securitization. Verdant’s vendor-focused origination model, combined with our experienced risk, financial and operations teams, produces predictable and sustainable results that investors can count on,” Mike Rooney, CEO of Verdant Commercial Capital, said. “Since our founding in 2017, we have successfully assembled an experienced team of industry leaders that understands and delivers what our clients need.”
Wells Fargo Securities acted as the structuring lead and joint bookrunner for the transaction, while BofA Securities was joint bookrunner and Regions Securities and Synovus were co-managers.
