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GreatAmerica Closes on 20th Term Securitization

February 16, 2021, 07:22 AM
Filed Under: Industry News

GreatAmerica Financial Services Corporation completed its 20th term securitization of $631.5 million in privately placed bonds with institutional investors. GreatAmerica uses proceeds from its securitizations to pay off debt in its warehouse and credit facilities and to support future originations and business operations.

Strong demand for GreatAmerica bonds came in the form of 55 orders placed for over five times the amount offered ($3.3 billion in orders for $632 million in bonds). This eclipsed the record 3:1 demand for the company’s 19th securitization in February 2020. In a repeat of the last three years’ term securitizations, 93.4 percent of the bonds were rated AAA. There were 28 unique investors, including three new investors. GreatAmerica has issued over $7.5 billion in bonds since 1995.

“This is essentially a report card that grades our operational strength,” said GreatAmerica Chairman and Chief Executive Officer Tony Golobic. “The demand for our bonds from institutional investors is a great affirmation of the consistency we continue to bring to the small-ticket segment and a testament to the hard work of our team members.”

The Standard and Poor’s presale report said GreatAmerica “is distinct from many other small-ticket equipment leasing companies because it benefits from long tenure and senior management continuity.”

Additionally, the Fitch presale report noted “strong and consistent earnings in terms of both ROA and ROE over the past decade and through periods of economic declines” and “consistency of operating performance and asset quality” in their assessment of GreatAmerica operational strengths.

GreatAmerica is the largest family-owned, small ticket national commercial equipment finance company in the U.S. GreatAmerica was established in Cedar Rapids, IA. in 1992 and today is organized into six divisions. It has a staff of over 600 employees with offices in Iowa, Georgia and Minnesota.

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