By: GreatAmerica on February 5th, 2024
GreatAmerica Announces $655 Million Term Securitization
(Cedar Rapids, IA) – GreatAmerica Financial Services Corporation announced today that it has closed on its 24th term securitization in $655,260,000 of privately placed bonds. S&P and Fitch rated 93.4% of the bonds in the transaction as AAA, unchanged from the prior seven transactions from GreatAmerica. To date, GreatAmerica bond issuances have totaled $9.9 billion.
“We are very pleased with the execution of our latest bond offering. Our company culture and track record of strong performance have enabled us to consistently access the debt markets and achieve desirable results,” said GreatAmerica CEO Martin Golobic. “We owe it to our GreatAmerica team members for their tireless approach towards quality, expertise, and value in helping our customers achieve greater success.”
Proceeds from the transaction will pay off outstanding warehouse and revolving credit facility debt, placing GreatAmerica in a strong liquidity position to continue to support business operations and serve its customers. A January 2024 S&P Global Ratings pre-sale report stated, “GreatAmerica is distinct from many other small-ticket leasing companies in that it has generally continued to grow its portfolio, even during downturns in the economic cycle...The company is distinct from many other small-ticket equipment leasing companies because it benefits from long tenure and senior management continuity.”
Investor interest was strong, as evidenced by over $2.5 billion in orders placed, 3.8 times the amount of bonds offered. There were 43 unique investors that participated in the bond transaction, including five new investors.
GreatAmerica is the largest independent, family-owned national commercial equipment finance company in the U.S. and is dedicated to helping manufacturers, vendors, and dealers be more successful and keep their customers for a lifetime. GreatAmerica was established in Cedar Rapids, Iowa in 1992 and now has offices in Iowa, Georgia, Minnesota, and Illinois. In addition to financing, GreatAmerica offers innovative non-financial services to help our customers grow.