Pawnee Leasing Corporation (“Pawnee”), the largest subsidiary of Chesswood Group Limited (TSX: CHW) (“Chesswood” or the “Company”), has closed a new US$75 million non-recourse asset backed facility with Capital One, N.A., which closed on October 13, 2017, through its Pawnee Receivable Fund I LLC.
The facility is secured by US$93.6 million in gross receivables from Pawnee’s prime portfolio of equipment leases and loans and repayment terms are based on the cash flow of the underlying portfolio. The proceeds will be used to pay down Chesswood’s existing revolving credit facility.
Established in 1982, Pawnee specializes in equipment leasing and financing for assets up to US$200,000, for a wide range of credit profiles from small businesses in the A, B, and C credit market segments.
“Our consistent growth since 2009 has changed the overall composition of our portfolio, which now exceeds $600 million in gross receivables, 50% of which are in the prime market segment. This changing mix has allowed us to access the U.S. securitization market and further expand and diversify our treasury,” said Barry Shafran, Chesswood’s President and CEO. “This is another milestone in our continuing growth and reflects Pawnee’s unique ability to offer customers financing in all credit segments of the market,” said Gary Souverein, Pawnee’s President.
Bryant Park Capital acted as exclusive placement agent and financial advisor for Pawnee in this transaction.
"Bryant Park Capital was instrumental in assisting Pawnee with all facets of this important transaction. We are very appreciative of Bryant Park’s efforts and diligence throughout this process."