(Cedar Rapids, IA) – GreatAmerica Financial Services Corporation completed its 20th term securitization of $631.5M 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 5 times the amount offered ($3.3B in orders for $632M 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% of the bonds were rated AAA. There were 28 unique investors, including 3 new investors. GreatAmerica has issued over $7.5B 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. and is dedicated to helping manufacturers, distributors, and dealers be more successful and keep their customers for a lifetime. GreatAmerica was established in Cedar Rapids, Iowa in 1992 and today is organized into six divisions. It has a staff of over 600 employees with offices in Iowa, Georgia, and Minnesota. GreatAmerica also offers innovative non-financial business services to help their customers grow. www.greatamerica.com
Matt Doty, GreatAmerica Vice President Corporate Communications, is responsible for maintaining image execution and brand continuity throughout the company. This includes written and verbal communications with internal and external audiences and overall strategic and tactical marketing activities.