Commercial Credit Group Inc. Closes Significant Asset-Backed Security
Commercial Credit Group Inc. has taken a monumental step by closing a term asset-backed security (ABS) transaction worth $513,770,000. This is a remarkable feat for the Charlotte-based equipment finance company, which has shown its dedication to growth through such ventures.
Largest ABS Transaction to Date
This transaction marks the largest ABS undertaken by Commercial Credit Group Inc. (CCG) thus far. Structured with a diverse set of institutional fixed-income investors, this securitization was facilitated by Bank of America Securities, Inc., which served as both the Structuring Agent and Lead Bookrunner.
Role of Institutional Investors
The support of these institutional investors is a clear indication of their trust in CCG's business model and stability. The proceeds from this substantial transaction are earmarked to support ongoing originations, enabling CCG to continue its mission of providing essential equipment financing.
Diverse Backing of the Securitization
The ABS is backed by CCG’s finance originations from various industries. These include the construction, fleet transportation, manufacturing, and waste equipment sectors, along with transportation and construction receivables originated by Keystone Equipment Finance Corp., a close affiliate of CCG.
Rating Classifications of Notes
The transaction comprises five distinct classes of notes, which come with impressive ratings from credit agencies. The classifications are as follows:
- Class A-1: Rated A-1+ by S&P and P1 by Moody's with a dollar amount of $111,510,000.
- Class A-2: Rated AAA by S&P and Aaa by Moody's, amounting to $335,910,000.
- Class B: Rated AA by S&P and Aa2 by Moody's for $26,540,000.
- Class C: Rated A by S&P and A2 by Moody's with a total of $25,220,000.
- Class D: Rated BBB+ by S&P and Baa2 by Moody's, worth $14,590,000.
Leadership Insight and Future Goals
In expressing satisfaction, Paul Bottiglio, CCG's CFO, acknowledged the significance of this transaction. He noted, "We're pleased to have completed our 20th term ABS transaction and appreciate the strong support from both new and returning investors. This transaction, our largest to date, reflects the continued confidence in our platform and enables us to further expand our ability to serve middle-market businesses with essential equipment financing."
Company Overview
Commercial Credit Group Inc. operates as an independent commercial finance company under the umbrella of Commercial Credit, Inc. Since its inception in 2004, CCG has been committed to facilitating equipment loans and leases for small to mid-sized businesses across various sectors, including construction and manufacturing. With its sales force strategically located across North America, CCG has successfully originated more than $8 billion in equipment financing, solidifying its reputation as a leader in the space.
Conclusion
This recent ABS transaction symbolizes Commercial Credit Group Inc.'s steadfast commitment to growth and innovation in equipment financing. It showcases the confidence that investors place in CCG and sets the stage for future endeavors that will continue to support the company's mission and clients.
Frequently Asked Questions
What is the amount of the ABS transaction closed by CCG?
The ABS transaction closed by Commercial Credit Group Inc. was for an amount of $513,770,000.
Who served as the Lead Bookrunner for this transaction?
Bank of America Securities, Inc. served as the Structuring Agent and Lead Bookrunner.
What industries does CCG primarily provide financing for?
CCG primarily provides financing for the construction, fleet transportation, manufacturing, and waste equipment industries.
What does the support from institutional investors signify?
The support from institutional investors signifies their trust and confidence in Commercial Credit Group Inc.'s business model and prospects.
How much equipment financing has CCG originated since its inception?
Since its inception, Commercial Credit Group Inc. has originated over $8 billion in equipment loans and leases.
