On November 15, 2013 Lease Corporation of America (LCA or the Company) closed on an investment commitment of $20 million from Virgo Investment Group (Virgo). The transaction will refinance current indebtedness, allow partial liquidity to select, existing shareholders and provide growth capital.
John B. Kemp, Chairman and CEO of LCA has issued the following statement: “We have been searching for a relationship to furnish liquidity for our shareholders while allowing the retention of effective control; restructure our long term debt; and provide growth capital. During this process we have met with many accomplished firms, a significant number of whom offered possible solutions. After careful study and analysis and extensive interaction with Jesse Watson and Mack McNair of Virgo, LCA came to the conclusion that Virgo, with its creative capacities, financial strength, and extensive connections, was the answer.”
Virgo Partner Mack McNair, who leads Virgo’s specialty finance practice, noted “Our LCA investment is the culmination of a two year proactive sourcing project in the equipment leasing space. We believe that the LCA transaction is a good example of how flexible capital and creative transaction structuring allows Virgo to create unique opportunities that are differentiated from traditional credit or control oriented equity investors. We are proud to support LCA Co-Founder, Chairman & CEO John Kemp, his team and existing shareholders in the next phase of growth in the business and believe there are multiple avenues of profitable expansion that leverage the strong foundation that LCA has built over the last 25 years. We believe that high quality originators and underwriters like LCA will be increasingly well positioned for growth, origination partnerships and other strategic alternatives.”
LCA is a full-service financing company specializing in technology and industrial equipment financing. LCA offers a multitude of leasing programs that allow companies to obtain the equipment they need now and pay for it over a fixed amount of time, freeing up working capital and credit lines. Based in Troy, Michigan, LCA has serviced the needs of its vendors, customers and brokers since its formation in 1988. LCA has kept pace with the ever-changing economy to develop innovative financing programs, professional marketing support and easy-to-use leasing tools for our clients. LCA is one of the largest independently owned leasing companies in the United States.
LCA Bank Corporation, member FDIC and wholly owned subsidiary of LCA, was founded in 2005 and is located in Park City, Utah. The Bauer Financial Inc.’s 2013 publication “Top 100 Banks,” as of December 31, 2012, places LCA Bank Corporation in the upper 1% of all federally insured institutions in the United States based upon the income measurement of Return on Average Assets.
Virgo is a private investment firm with committed and raised capital of over $600 million. Virgo focuses on opportunistic credit and shared-control, structured equity investments in partnership with top quality management teams and founder-run or family-owned companies. Virgo targets situations where there is an expected inflection point in the future earnings of a target company and opportunities where new ideas combined with influence, including a board governance role, can drive an asset appreciation outcome.