by Matt Doty on Friday, February 16, 2018
(Cedar Rapids, IA) – GreatAmerica Financial Services Corporation announced today the completion of its 17th term securitization of $544.8M in privately placed bonds with institutional investors, an increase of $51.7M from its last securitization one year ago.
GreatAmerica has made more than $5.6 billion in placements since 1995 and is a regular issuer of bonds on the asset-backed securities market. “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, while maintaining its losses and delinquencies at relatively low and historically consistent levels,” noted S&P Global’s Presale Report.
Of the 34 investors who participated, 7 were first-time buyers of GreatAmerica transactions. There was $2.7B in investor demand for the GreatAmerica bonds, which was over 5 times the amount offered. The portfolio is predominantly office equipment and telecom assets.
“Strong bond demand goes hand in hand with strong portfolio performance, and we’ve been rewarded for this by our investors,” said GreatAmerica CEO and Chairman Tony Golobic. “I am especially pleased that the rating agencies rated 93.4% of the bonds as AAA, which is higher than last year.”
GreatAmerica is one of the largest independent small ticket 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 today is organized into seven business units. It has a staff of over 500 employees with offices in Georgia, Minnesota, and Missouri. We also offer innovative non-financial services to help our customers evolve their businesses.
For additional information, please visit greatamerica.com