Verdant Commercial Capital, LLC, one of the nation’s top 10 largest and fastest-growing independent equipment finance companies, announces the closing of its latest 144a term securitization. “VERD 2024-1” issued notes totaling $307,667,000 that are backed by a diverse portfolio of high-quality equipment leases and loans collateralized by equipment primarily related to vocational vehicles, construction, golf course management, material handling and other industrial equipment with an average original equipment cost of approximately $150,000.
The five classes of notes issued were rated by both Moody’s and Kroll Bond Rating Agency, with $272.5 million of the notes rated P-1/K-1+ and Aaa/AAA by the respective rating agencies. Demand was strong for the VERD 2024-1 issued notes as evidenced by orders from 37 unique investors, of which 25 were new investors, and was almost seven times oversubscription.
“We are very pleased with the execution and robust receptivity of our latest offering,” said Robert Moskovitz, Chief Financial Officer of Verdant Commercial Capital. “The expansion of our investor base and the high demand enhances liquidity to fund our portfolio growth in addition to enhancing bond holder’s liquidity.”
This was Verdant’s third term securitization and second 144a offering. The term securitization market is a key component of liquidity to support the company’s continued lease and loan origination growth. Verdant expects to continue to be a once-a-year programmatic issuer.
“It’s satisfying to see the market recognize the high-quality performance of the equipment leases and loans that Verdant’s platform originates,” said Verdant Chief Executive Officer Mike Rooney. "This successful offering further validates Verdant’s vendor-focused origination model, combined with our experienced risk, financial and operations teams produces predictable and sustainable results that investors can count on.”
Wells Fargo Securities acted as the structuring lead and joint bookrunner. BofA Securities was joint bookrunner. Regions Securities LLC and Synovus were co-managers.
