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Stonebriar CF Closes Third Securitization in Nine Months

February 27, 2017, 07:10 AM
Filed Under: Industry News

Stonebriar Commercial Finance (Stonebriar), a leading independent middle market commercial finance company announced the closing of its third securitization transaction, SCFET 2017-1, for approximately $340 million. SCFET 2017-1 marks the third securitization transaction that Stonebriar has closed in the last 9 months, bringing total assets securitized to over $945 million. SCFET 2017-1 closed on February 23, 2017 and consists of a $340 million portfolio of commercial equipment loans and leases across the rail, aviation, marine transportation, energy, manufacturing and construction industries. SCFET 2017-1 is the first ever hybrid transportation and equipment ABS transaction offered in the market. The A and B tranches of the transaction received ratings of A1 and Baa3 from Moody's and A+ and BBB from Kroll Bond Rating Agency.

Credit Suisse was the sole book runner and structuring agent of the notes. Stonebriar will continue to service the assets, with US Bank as backup servicer.

Dave B. Fate, President and CEO of Stonebriar, stated "Since June 2016, Stonebriar has executed three securitization transactions that have generated significant demand from a diverse group of domestic and international institutional investors. Our 2017-1 transaction was enthusiastically accepted by the investor community, with 13 repeat investors and 13 new investors. The single A ratings achieved from Moody's and Kroll on this transaction are a testament to Stonebriar's experienced team in building a high quality portfolio of assets."

Jon-Claude Zucconi, Managing Director for Credit Suisse, stated "Stonebriar's second large-ticket equipment platform securitization which included rail and corporate aircraft collateral, met strong and diversified investor interest. Ultimately 26 investors including 13 new buyers participated in the transaction driven by money managers, insurance companies and pension funds." He reported that "the Class A Notes were over 2.5X subscribed and priced at +205, 70 bps tighter than the inaugural 2016-1 trade. The deal over deal tightening reflects confidence in the SCF management team, comfort with the diversified asset profile and underlying performance, and increasing liquidity of the issuance platform."

Stonebriar is a privately held commercial finance company established in 2015 and based in Plano, TX. With financial backing from Security Benefit Corporation, Stonebriar is building a world class, multi-billion dollar platform of commercial loans and leases. Stonebriar specializes in transactions for businesses in a wide variety of industries (Business Aviation, Rail Leasing, Realty Capital, marine transportation, manufacturing, energy, etc.) throughout the entire credit spectrum located in the United States, Canada and select other foreign jurisdictions.

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