(Cedar Rapids, IA) –GreatAmerica® Financial Services Corporation announced that
it has closed on its 25th term securitization with $641,875,000 of
privately placed bonds. S&P and Fitch rated
93.4% of the bonds in the transaction as AAA, unchanged from the prior eight
transactions from GreatAmerica. This transaction brings GreatAmerica’s
life-to-date bond issuances to $10.5 billion.
“A strong company culture and consistent performance have
enabled us to access the debt markets and achieve great results,” said
GreatAmerica CEO Martin Golobic. “We are very pleased with the execution of our
latest bond offering and owe it to our GreatAmerica team members for the
quality, expertise, and value they bring every day helping our customers
achieve greater success.”
Proceeds
from the transaction will pay off outstanding warehouse and revolving credit
facility debt, placing GreatAmerica in a strong liquidity position to continue
to support business operations and serve its customers.
A July 2024 S&P
Global Ratings presale report stated, “GreatAmerica is distinct from many other
small-ticket leasing companies in that it has generally continued to grow its
portfolio, even during downturns in the economic cycle, while maintaining its
losses and delinquencies at relatively low and historically consistent levels.”
Investor
interest was strong, as evidenced by nearly $3 billion in orders placed, 4.5
times the amount of bonds offered. There were 40 unique investors that
participated in the bond transaction, including nine new investors.
About GreatAmerica
Financial Services®
GreatAmerica is the largest, family-owned
national commercial equipment finance company in the United
States. A $3+ billion company with life-to-date finance originations of $16.9
billion, GreatAmerica was established in Cedar Rapids, Iowa in 1992. Dedicated
to helping manufacturers, distributors, resellers, and franchisees be more
successful and keep their customers for a lifetime, GreatAmerica offers
innovative, complementary services in addition to financing. GreatAmerica is
committed to the communities it serves and donates more than $1.1 million
annually through a GreatAmerica Donor Advised Fund and an Employee Advised
Fund, giving team members a say in where funds are allocated. www.greatamerica.com