Sun Life, Securcor Establish ABS Program with Tetra
Sun Life Financial, Securcor and Tetra Financial Group announced the establishment of a private securitization facility for $50 million funded by Sun Life Assurance Company of Canada, the primary life insurance subsidiary of Sun Life Financial. The facility is backed by commercial equipment leases originated by Tetra Financial.
Securcor provided structuring support and is acting as the administrative agent on behalf of Sun Life.
The securitization facility draws on Tetra Financial’s equipment financing expertise and origination platform and Sun Life’s capital resources. It will enable Tetra Financial to expand its market share and establish Sun Life’s and Securcor’s presence in the U.S. equipment finance industry.
“The completion of our first equipment lease securitization program in the U.S. is a major milestone in our strategic vision,” said Neil Cameron, senior managing director, head of Private Securitization Finance, Sun Life Investment Management. “This move follows successful inroads we have made in the United States in other asset classes, but this is our first entry into the equipment finance sector. We have been exploring this space for a while and are very pleased to take this first step with the experienced team at Tetra Financial.”
“For us, it’s all about delivering effective financing solutions for our customers’ critical equipment needs,” said Scott Scharman, CEO, Tetra Financial. “And entering into this relationship with Sun Life, one of the global leaders in finance, provides us even more opportunities to expand our presence and take us to a new level. This facility provides a substantial source of liquidity to fund originations at a cost that allows us to more competitively allocate capital across a wider credit spectrum, while maintaining our strong underwriting and local decision-making authority that has made us so effective in providing flexible options for our customers.”
Tetra Financial will continue to service the underlying commercial equipment leases on behalf of Sun Life, and Securcor will continue to be responsible for ongoing program administration and reporting.
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