Direct Capital announced that it has completed a $163 million term securitization of equipment lease backed notes. This financing will be used to support the company’s rapid new business growth and to reduce the amount of borrowings outstanding under the company’s various credit facilities.

The transaction was a private offering made to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The company issued five classes of notes, which were rated ‘AA’ to ‘BB’ by Standard and Poor’s. DBRS rated the senior notes ‘AAA’. Direct Capital Funding IV, LLC, a special-purpose entity wholly owned by Direct Capital, served as issuer. Guggenheim Securities acted as the initial purchaser of the notes.

“This transaction strengthens our balance sheet and our ability to deploy capital to the critically underserved small business population,” said Direct Capital’s Chief Financial Officer Dawn Gillette. “It’s a true confirmation of Direct Capital’s track record as a leading business lender.”

Mrs. Gillette and Direct Capital thanked their partner, Guggenheim Securities, for their contributions to this successful transaction.