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GreatAmerica Completes 18th Term Securitization, $612.2MM

February 19, 2019, 07:25 AM
Filed Under: Industry News

GreatAmerica Financial Services Corporation completed its 18th term securitization of $612.2 million in privately placed bonds with institutional investors. GreatAmerica uses proceeds from its securitizations to pay off debt in its warehouse and credit facilities to support continuous growth.

“This transaction represents our largest securitization to-date and is a testament to the strength and consistency of our growth and our portfolio performance,” said GreatAmerica Chairman and Chief Executive Officer Tony Golobic. “We are very pleased to have such high demand for our bond issuance, including from several new investors.”

Investor demand was three times greater than the amount offered, with nearly $2 billion of orders for $612.2 million in bonds. All told, 56 orders were placed among 35 unique investors, seven of whom participated for the first time. Additionally, 93.4 percent of the bonds issued were rated AAA.

GreatAmerica is a regular issuer of bonds in the asset-backed securities market, placing more than $6.2 billion since 1995. According to S&P Global Ratings presale report, “GreatAmerica is distinct from many other small-ticket leasing companies in that it has continued to grow its portfolio, even during downturns in the economic cycle.” Similarly, the Fitch presale report noted GreatAmerica strengths as “strong and consistent earnings in terms of both ROA and ROE over the past decade and through periods of economic downfall; GreatAmerica’s experience as servicer on prior transactions; and consistency of operating performance and asset quality.”

GreatAmerica is among the largest independent small ticket national commercial equipment finance companies in the U.S. A family-owned business, GreatAmerica was established in Cedar Rapids, IA, in 1992 and is organized into eight business units. It has more than 500 employees with offices in Georgia, Minnesota and Missouri. GreatAmerica also offers innovative non-financial business services.

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