ENGS Commercial Finance closed a $225.4 million equipment securitization on March 22, 2018 through ENGS Commercial Finance Trust 2018-1.
This is ENGS’ third securitization transaction since 2015, collateralized by a segregated pool of commercial loan contracts primarily financing commercial trucks and trailers. The securitization included classes of notes rated AAA(sf) to BB(sf) by DBRS, based on, among other things, its analysis of the loan portfolio and the strength of ENGS’ experienced management team, which has a long track record of originating and servicing commercial equipment loans.
Scott Franklin, senior vice president of Capital Markets, stated, ”We are very pleased with the execution on this transaction, substantially reducing our overall credit spread relative to previous deals, signifying strong investor demand, solid portfolio performance and our commitment to utilizing the term securitization market as a key liquidity source for the organization. We intend to continue to be a frequent issuer into the term securitization market for the foreseeable future.”
The transaction had strong subscription levels and was syndicated to several investors. Credit Suisse acted as co-lead, joint bookrunner and structuring agent and BMO Capital Markets was co-lead and joint bookrunner. Capital One Securities and PNC Capital Markets were co-managers for the transaction.
“The overwhelming interest in the transaction illustrates the support we have received from our investors,” stated John Vande Moore, CFO of ENGS.