Pawnee Leasing, the largest subsidiary of the Chesswood Group, completed a $250 million warehouse facility led by Royal Bank of Canada.
The facility will fund Pawnee’s growing prime portfolio. The warehouse facility will hold Pawnee’s prime receivables before they are securitized and provides an improved cost of capital and better advance rate than the company’s revolving facility, which was primarily structured for non-prime commercial leases and loans and will continue to be utilized for those originations.
“Our consistent growth since 2009 has driven the evolution of our treasury resources. That began with our corporate revolving facility in late 2014 that expanded our access to capital and is now complemented by this additional facility which better meets the needs of our U.S. prime business, launched in 2015,” said Barry Shafran, Chesswood’s president and CEO.
Mike Prenzlow, Pawnee’s CFO added, “We began this process months ago, with Royal Bank of Canada as our lead partner once again. We were very happy to also include Bank of Montreal and SunTrust as the other two members of the loan syndicate. Both RBC and Bank of Montreal are also our partners in Chesswood’s revolving credit line and we’re grateful for the continued support they have shown Chesswood and Pawnee through their participation in this second facility.”
Established in 1982, Pawnee specializes in equipment leasing and financing to small businesses across the U.S. for assets up to $250,000 for a full range of credit profiles.
Based in Toronto, the Chesswood Group is a publicly-traded commercial equipment finance company focused on small and medium-sized businesses with a portfolio exceeding $800 million in gross finance receivables.
