Avtech Capital Achieves Milestone with ABS Issuance
Avtech Capital, LLC, has proudly announced the successful completion of its inaugural asset-backed securitization known as AVT 2026-1. This transaction has an impressive aggregate value of $141 million and includes four classes of notes, with the senior tranche receiving a AAA rating from Kroll Bond Rating Agency, which speaks volumes about the quality and potential of the offering.
Strong Demand in the Securitization Market
The issuance is supported by a robust portfolio of commercial equipment leases that cover a diverse range of industries and types of equipment. The transaction was met with overwhelming enthusiasm from institutional investors, leading to significant oversubscription, clearly illustrating the market's confidence in Avtech's business model.
Key Financial Partners in the Transaction
Capital One Securities, Inc. played a pivotal role as the sole structuring agent and bookrunner for this successful transaction, while Chapman and Cutler LLP provided essential legal support to Avtech throughout the process. This collaboration has showcased the capabilities and strength of Avtech as a viable player in the securitization market.
Leadership Insights on the Transaction
Chris Scharman, the Chief Executive Officer of Avtech, expressed pride in reaching this significant milestone for the company. “The strong reception from institutional investors reflects our quality in origination, underwriting, and servicing. Engaging in the securitization market is crucial for our mission to scale up and deliver efficient equipment financing solutions to our customers across the United States,” he stated.
Team Statements on Future Growth
Chris Emery, the President of Avtech, also shared his reflections, emphasizing gratitude towards their banking partners, legal counsel, and third-party providers who greatly contributed to the success of this transaction. Their combined efforts have ensured that Avtech is positioned for future successes.
Eric Shea, Senior Managing Director and Head of Structured Products at Capital One Securities, remarked, “Partnering with Avtech Capital on this inaugural ABS transaction was a pleasure. This successful issuance highlights the confidence the market has in Avtech's management and platform, and we look forward to assisting in their future growth journey.”
About Avtech Capital
Avtech Capital, LLC, is a leading privately held equipment finance and leasing company. It specializes in providing tailored equipment financing solutions that cater to small, medium, and large businesses across numerous industries within the United States. These sectors include healthcare, manufacturing, technology, energy, construction, mining, transportation, and many more. Avtech's commitment to customer service and flexibility in offering equipment financing options sets it apart in a competitive landscape.
Frequently Asked Questions
What is AVT 2026-1?
AVT 2026-1 is Avtech Capital's inaugural asset-backed securitization with a total value of $141 million.
Who rated the senior tranche of AVT 2026-1?
The senior tranche of AVT 2026-1 received a AAA rating from Kroll Bond Rating Agency.
What industries does Avtech Capital serve?
Avtech Capital serves various industries, including healthcare, manufacturing, technology, energy, and logistics.
Who were the key partners in this transaction?
Capital One Securities was the sole structuring agent, and Chapman and Cutler LLP acted as legal counsel.
What does this issuance mean for Avtech Capital's future?
This issuance allows Avtech Capital to continue scaling and improving its equipment financing solutions, thereby enhancing its market position.
