Improved and Expanded Funding for U.S. Prime Receivables
TORONTO, Aug. 20, 2018 /CNW/ - Chesswood Group Limited (TSX: CHW) ("Chesswood" or the "Company") announced today that its largest subsidiary, Pawnee Leasing Corporation ("Pawnee"), has closed a US$250 million warehouse facility specifically to 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.
Established in 1982, Pawnee specializes in equipment leasing and financing for assets up to US$250,000, for a full range of credit profiles to small businesses across the U.S. including "start-up entrepreneurs" and more established businesses in the A, B, and C credit market segments.
"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 Chief Financial Officer added "We began this process months ago, with Royal Bank of Canada ("RBC") 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."
About Chesswood Group Limited
Through two wholly-owned subsidiaries in the U.S. and Canada, Chesswood Group Limited is North America's only publicly-traded commercial equipment finance company focused on small and medium-sized businesses with a portfolio exceeding $800 million in gross finance receivables. Our Colorado-based Pawnee Leasing Corporation, founded in 1982, finances a highly diversified portfolio of commercial equipment leases and loans through established relationships with over 600 independent brokers in the U.S. In Canada, our subsidiary Blue Chip Leasing Corporation has been originating and servicing commercial equipment leases and loans since 1996, and today operates through a nationwide network of more than 50 independent brokers.
Based in Toronto, Canada, Chesswood's shares trade on the TSX under the symbol CHW.
To learn more about Chesswood Group Limited, visit www.ChesswoodGroup.com.
The separate websites of Chesswood Group Limited's operating businesses are at www.PawneeLeasing.com and www.BlueChipLeasing.com
This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
SOURCE Chesswood Group Limited
For further information: Barry Shafran, Chesswood Group Limited, 416-386-3099, [email protected]