Stonebriar Commercial Finance announced it has issued and sold $227,000,000 of Series A 7.50% Fixed-Rate Reset Cumulative Preferred Shares (Preferred Shares) in a private offering.
The Preferred Shares, rated “BB” by DBRS, were issued to a group of qualified institutional buyers and will trade under the ticker “STBRCF”. They are perpetual, callable after five years, and will pay semi-annual dividends to investors beginning in October 2021.
RBC Capital Markets served as Structuring Advisor, Billing & Delivery Agent and Joint Book-Running Manager. BofA Securities also served as Joint Book-Running Manager. BNP Paribas, Citizens Capital Markets, Fifth Third Securities and MUFG Securities Americas served as Co-Manager on the placement. US Bank National Association serves as Calculation Agent, Paying Agent, Registrar and Transfer Agent for the Preferred Shares. The DBRS ratings report may be found at www.dbrsmorningstar.com.
Dave B. Fate, CEO of Stonebriar, said, “The Preferred Shares represent another milestone in Stonebriar’s ongoing development of efficient and sustainable sources of capital. Along with our new $200 million unsecured revolving credit facility and $1 billion non-recourse warehouse facility, the Preferred Shares provide a strong foundation for the company’s continued growth and strategic initiatives. Strong market reception for the Preferred Shares allowed us to significantly upsize the issuance while still achieving attractive pricing. This offering is a testament to the quality of our business and our disciplined approach to underwriting and risk management.”
“The team at RBC Capital Markets did a great job structuring and marketing the Preferred Shares from start to finish,” continued Fate. “We very much appreciate the team’s work and focus on this transaction and believe Stonebriar is extremely well-positioned to continue to provide our customers with the capital and structuring solutions they need heading into 2022.”
The company intends to use proceeds from the issuance of the Preferred Shares for general corporate purposes. Akin Gump Strauss Hauer & Feld LLP represented Stonebriar on the transaction. Cravath, Swaine & Moore LLP represented the initial purchasers.