Daily News: October 16, 2017

Capital One Provides $75MM ABL to Chesswood Group

Toronto-based Chesswood Group‘s subsidiary Pawnee Leasing closed a new $75 million non-recourse asset-backed facility with Capital One through its Pawnee Receivable Fund. This is the company’s first U.S.-based securitization.

The facility is secured by $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. Chesswood’s outstanding indebtedness under its $250 million revolving facility will total approximately $140 million following the repayment. Bryant Park Capital acted as exclusive placement agent and financial advisor for Pawnee in this transaction.

“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. “We’re also very pleased to have completed our first U.S. securitization with Capital One, a top ten U.S. bank and a long-time supporter of the equipment finance industry.”

Established in 1982, Pawnee specializes in equipment leasing and financing for assets up to $200 million for a wide range of credit profiles from small businesses across the U.S.