Commercial Credit Group Closes $317.1MM Term ABS Transaction

November 15, 2019, 07:20 AM

Filed Under: Transaction Announcements

Related: Asset-Backed Securities, Commercial Credit Group

Charlotte, NC-based Commercial Credit Group Inc. (CCG), an independent commercial equipment finance company, announced the closing of a 144a privately placed term asset-backed security (ABS) transaction (the 2019-2 transaction). The $317,122,000 financing was placed with a broad group of fixed income investors, representing 23 unique institutions.

The closed its 11th asset-backed security transaction, bringing total offerings to nearly $2.5 billion.

JP Morgan Securities LLC served as Structuring Agent and Lead Bookrunner for the placement. The financing contracts supporting the security consist of a diverse pool of CCG’s customer contract originations in the construction, fleet transportation, manufacturing and waste equipment industries. The multi-tranche placement carried the following ratings:

Class A-1 Notes — A-1+ (sf), S&P; F1+ (sf), Fitch; $84,000,000;
Class A-2 Notes — AAA (sf), S&P; AAA (sf), Fitch; $196,100,000;
Class B Notes — A (sf), S&P; A (sf), Fitch; $28,903,000;
Class C Notes — BBB+ (sf), S&P; BBB+ (sf), Fitch; $8,119,000.

“This is CCG’s 11th transaction since 2011 with offerings now totaling nearly $2.5 billion. The oversubscription in all classes reflects the diversity of the underlying assets, our attention to credit quality and the strength of our risk management systems,” stated Paul Bottiglio, Vice President and Treasurer. “We are appreciative of the continued support from the ABS investor community and are pleased to welcome several new investors to this transaction.”

Commercial Credit Group Inc., a wholly owned subsidiary of Commercial Credit, Inc., provides secured loans and leases to small and mid-sized businesses in the construction, fleet transportation, machine tool and manufacturing 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 $4.5 billion of finance receivables.