Engs Commercial Finance Co. (“Engs”) (https://www.engsfinance.com) closed a $198.6 million equipment securitization on November 4, 2016 through Engs Commercial Finance Trust 2016-1.
This is Engs’ second 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 R- 1(high) (sf) by DBRS, the highest rating DBRS assigns to notes, down to BBB (sf), based on, among other things, their analysis of the loan portfolio and strength of ENGS’ experienced management team having a long track record of origination and servicing commercial loans.
Scott Franklin, Senior Vice President of Capital Markets, stated ”This transaction is consistent with the organization’s capital markets strategy, utilizing securitization as a frequent source of funding capacity. Engs’ will continue to provide superior financing options to its extensive customer base by leveraging the liquidity support of the term securitization market in providing a cost efficient, fully hedged financing option,”.
Engs is one of the largest independent equipment finance companies serving North America. Engs specializes in financing commercial equipment in the transportation and industrial products markets. Engs will originate, on a pro forma basis, almost $500 million of equipment in 2016.