Encina Equipment Finance, LLC (EEF) announced the recent closing of two financing facilities totaling $755 million; $605 million of the total relates to the amendment and extension of an existing bank facility, while the other $150 million relates to a new facility.
EEF’s existing bank facility was amended to provide EEF with committed capacity of $405 million and a $200 million accordion. The term of the facility was also extended by the addition of a new three-year revolving period to be followed by an amortization period. In addition, the facility’s eligibility criteria were expanded to accommodate the full range of EEF’s product offerings.
EEF’s new facility is a private securitization agented by Sun Life Capital Management (Canada) Inc. (SLC Management). The securitization facility provides for full-term financing of discrete, amortizing pools of equipment loans and leases originated by EEF. Initially established as a $150 million program, EEF and SLC Management may agree to add new capacity to the securitization program from time to time in the future.
“We are delighted to have closed on these two financing vehicles,” said Willie Brasser, CEO of EEF. “Our updated bank facility now meets our capacity needs, allows us to fund a broader range of originations, and provides us with a strong and diversified group of lenders. We are also very excited to have closed EEF’s inaugural securitization with SLC Management. They are a pleasure to do business with, and their knowledge and experience in equipment finance clearly shows. We look forward to working with both our existing bank lenders and SLC Management as we continue to grow EEF’s balance sheet.”
“This is a significant facility as SLC Management continues to expand its securitization relationships in the U.S. Encina’s prudence in originating and managing their business aligns with SLC Management’s own approach. We are pleased to close this facility with the experienced and reputed team at Encina and look forward to growing the relationship,” said Jeffery Mayer, Managing Director, Private Securitization Finance at SLC Management.
Launched in June 2017, Encina Equipment Finance provides loans and leases ranging in size from $5 million to $50 million secured by essential-use machinery and equipment. The platform provides financing to both privately owned (sponsor and non-sponsor) and publicly traded companies across a wide range of collateral types, industries (including, but not limited to, construction, distribution, energy, food processing, health care, information technology, manufacturing, mining, paper & packaging, and transportation) and use cases (including loans against existing or newly acquired assets, leases of newly acquired assets and sale-leasebacks of existing assets).
SLC Management is a global institutional asset manager that offers institutional investors traditional, alternative, and yield-orientated investment solutions across public and private fixed income markets, as well as global real estate equity and debt. SLC Management is the brand name for the institutional asset management business of Sun Life Financial Inc. under which Sun Life Capital Management (U.S.) LLC in the United States, and Sun Life Capital Management (Canada) Inc. in Canada operate.