Commercial Credit Group Inc. (“CCG” or the “Company”) announced the closing of a 144a term asset backed security (ABS) transaction. The aggregate $265,380,000 amortizing term ABS was placed with a broad group of institutional investors. The financing contracts included in the security consist of a diversified pool of CCG's overall contract originations.
Ratings information and updates on the multi-tranched notes are available at www.standardandpoors.com and www.dbrs.com.
The financing offered three classes of securities: a $72,400,00 Class A-1 money market security rated A1+(sf) and R-1(h) with a coupon of .27%, a $177,170,000 Class A-2 tranche rated AAA(sf) and AAA(sf) with a coupon of 1.06%, and a $15,810,000 Class B tranche rated A(sf) and A(sf) with a coupon of 2.15%. Ratings were provided by Standard and Poor’s and DBRS respectively on each tranche.
J. P. Morgan Securities, LLC and BMO Capital Markets GKST Inc. served as Joint Bookrunners and SunTrust Robinson Humphrey, Inc. served as Co-Manager.
"This transaction is the Company’s fourth term ABS transaction. A larger proportion of the highest investment grade rating was achieved as compared to our previous transactions, which reflects the Company’s asset quality, financial performance and growth prospects. This placement saw increased participation from a number of new investors and all tranches were significantly oversubscribed. We are looking forward to further expanding our relationships with the institutional market and appreciate their continued interest in CCG," said Roger Gebhart, SVP and Chief Financial Officer.
Commercial Credit Group Inc. (CCG) is an independent, commercial equipment finance company that provides secured loans and leases to small and mid-sized businesses in the construction, fleet-transportation and waste industries. The company's sales force is located throughout North America and sources transactions through end-users, equipment vendors and manufacturers with typical transaction sizes ranging from $100,000 to $2,500,000. Since its inception in 2004, CCG has originated over $1.5 billion of finance receivables. CCG is headquartered in Charlotte, North Carolina and operates full service offices in Buffalo, NY and Naperville, IL. CCG Equipment Finance Limited, a wholly owned subsidiary of CCG, services the Canadian Provinces of Ontario, west to British Columbia, from its Canadian headquarters in Hamilton, Ontario.