Garnet Capital Advisors announced the closing of the sale of a credit facility collateralized by a $117 million subprime lease portfolio on behalf of the co-lenders, who are leading institutions in the industry. The sale was prompted by the bankruptcy filing of the originator and initial servicer. The collateral portfolio was comprised of both current and delinquent accounts.

Offering the facility servicing-retained gave buyers the option of leaving the accounts with the replacement servicer. Selling the credit facility as opposed to the underlying lease portfolio minimized the administrative burden and led to a more expeditious closing. These factors combined to maximize buyer participation in the offering with dozens of buyers registered for the sale, resulting in a successful outcome for the sellers.

Andrew Stumm, Managing Director at Garnet Capital, stated: "Garnet has unparalleled expertise in managing loan sales involving bankruptcies, trustee sales and portfolio liquidations, having closed dozens of transactions for billions of dollars in UPB. As a result, we know the market for these assets and how to structure sales to maximize value."