Daily News: May 3, 2019

Utica Leaseco Completes $20MM Lease Facility

Utica Leaseco closed $20 million of a $50 million lease facility for the manufacturer of a high-tech proprietary energy product. The lease is secured by machinery and equipment and other intangible property.

The manufacturer, which closed a similar, smaller lease facility with Utica in 2017, has been engaged in significant research and development activities to perfect its manufacturing process as well as its product line. The $50 million lease facility provides the manufacturer with the capital required to acquire the highly automated manufacturing equipment it needs to meet demand for its proprietary energy product.

Closing this transaction required Utica Leaseco to cross many due diligence hurdles, including working with legal counsel in three countries, dealing with the valuation of a large quantity of equipment from many suppliers, securing liens on many U.S. patents and working closely with our syndication partners.

“We are also looking forward to a long and mutually beneficial relationship with this customer,” said David Levy, president of Utica Leaseco, “and are excited to see what the future holds for this particular company.”