Verdant Commercial Capital, LLC, the nation’s sixth largest independent equipment finance company, announces the closing of its initial 144a term securitization. “VERD 2023-1” issued notes totaling $251,253,000 that are backed by a diverse portfolio of high-quality equipment leases and loans collateralized by primarily material handling equipment, vocational trucks, and other industrial and manufacturing equipment with an average remaining individual contract balance of approximately $132,200.
The five classes of notes issued were rated by both Moody’s and Kroll Bond Rating Agency, with $220.7 million of the notes rated P-1/K-1+ and Aaa/AAA by the respective rating agencies. Demand was strong for the VERD 2023-1 issued notes as evidenced by orders from 22 unique investors and almost three times oversubscription.
“Our initial 144a issuance is another important step forward in executing our capital strategy,” said Robert Moskovitz, Chief Financial Officer of Verdant Commercial Capital. “The great success of this offering was validated by robust investor receptivity. It is unprecedented to have a first-time issuer receive ratings from both Moody’s and Kroll.”
Verdant plans to be a recurring issuer. The term securitization vehicle is a key component of liquidity to support the company’s continued lease and loan origination growth.
“We are pleased with the confidence investors have shown in Verdant, and the successful issuance of our inaugural 144a securitization. Verdant’s vendor-focused origination model, combined with our experienced risk, financial and operations teams produces predictable and sustainable results that investors can count on,” said Verdant Chief Executive Officer Mike Rooney. “Since our founding in 2017, we have successfully assembled an experienced team of industry leaders that understands and delivers what our clients need.”
Wells Fargo Securities acted as the structuring lead and joint bookrunner. BofA Securities was joint bookrunner. Regions Securities LLC and Synovus were co-managers.
Verdant Commercial Capital is the sixth largest independent equipment finance company in the United States. Verdant provides financing solutions for the acquisition of business essential equipment and software in six industries: Industrial; Manufacturing; Specialty Vehicle; Golf, Sports & Entertainment; Renewables & Energy Efficiency; and Technology & Office Automation. Verdant brings partners the ability to fund business with transaction sizes from below $25,000 up to $100 million. The company is headquartered in Cincinnati and has offices in Dallas, Detroit, Los Angeles and Minneapolis. Verdant was named a Top Workplace by The Enquirer Media in 2022 and 2023. For more information, visit www.verdantcc.com.