Wingspire Equipment Finance announced the successful completion of its inaugural asset-backed securitization (ABS), WEF 2024-1. The transaction raised $201 million and was the first inaugural large-ticket equipment ABS to receive ratings from a major rating agency.
The transaction included five classes of notes, with the uppermost classes receiving the highest achievable ratings of F1+/K1+ and AAA from Fitch Ratings and Kroll Bond Rating Agency. The transaction was backed by a diverse portfolio of equipment loans and leases spanning numerous industries. The transaction was more than 3x oversubscribed, reflecting strong investor demand. The investment grade ratings and market enthusiasm were driven by the portfolio’s excellent credit performance, the management team’s cycle-tested experience, strong sponsorship, and the quality of Wingspire Equipment Finance’s originations platform, underwriting standards, and servicing capabilities. Over 20 prominent investors participated in the transaction.
“We are honored to be the first large-ticket equipment finance company to achieve a AAA rating from a major rating agency on an inaugural issuance,” said Eric Freeman, CEO of Wingspire Equipment Finance. “This achievement not only highlights the quality of our portfolio and the expertise of our team but also sets a new standard in our industry. We are excited to build on our growth trajectory as we continue to deliver financing solutions that fit our clients’ needs.”
David Wisen, CEO of parent company Wingspire Capital, added: “The Wingspire platform is committed to supporting the capital needs of middle market companies and their sponsors. This transaction allows us to better serve our clients while simultaneously diversifying and expanding our investor base.”
Wells Fargo Securities served as the transaction's sole structuring agent and joint bookrunner. BofA Securities served as joint bookrunner. Deutsche Bank Securities and Texas Capital Securities served as co-managers. VedderPrice acted as legal counsel to Wingspire Equipment Finance and the issuer.