On October 28, 2024, Equify Financial completed our second asset-backed securitization (ABS), issuing a total of $153.4 million in securities. This marks a significant step forward for our company, strengthening our financial position and providing the capital needed to support our continued growth in the equipment finance sector.
“This securitization represents a major achievement for Equify Financial. Earning our first AAA rating on the senior Class A notes is a testament to the strength of our platform, disciplined underwriting, and portfolio performance,” Pat Hoiby, CEO of Equify Financial, said. “The strong investor demand and support from top-tier partners like ATLAS SP and Texas Capital Securities signal confidence in our long-term strategy. With this transaction, we are well-positioned to continue delivering flexible financing solutions to our customers.”
The senior Class A notes from this transaction earned a AAA rating from DBRS Morningstar, recognizing the stability and quality of the underlying assets. This top-tier rating enhances the appeal of the securitization to institutional investors and underscores the strength of our overall financial strategy.
A Robust Capital Structure
The latest securitization features a diversified capital structure, with ratings spanning from AAA to BBB. This tiered approach helps to balance risk and return for investors while giving Equify Financial the liquidity needed to fund new originations and support our ongoing operations. The proceeds from this transaction will be used to further strengthen the organization’s balance sheet, enhance liquidity, and drive the next phase of growth in our equipment finance business.
Collaborating with Trusted Partners
This successful securitization wouldn’t have been possible without the support of key financial partners. ATLAS SP played a crucial role as the sole structuring agent and active joint bookrunner, while Texas Capital Securities served as joint bookrunner. Their expertise and collaboration were integral to ensuring the transaction was structured effectively and marketed to the right investors.
Fueling Our Growth and Liquidity
The funds raised from this ABS offering will allow us to expand our origination efforts, which means more opportunities for businesses seeking heavy equipment financing. Having enhanced liquidity also puts us in a stronger position to manage market fluctuations and continue delivering value to our clients. This capital will catalyze further growth, ensuring we can continue to meet the evolving needs of our customers and partners in the equipment finance space.
This milestone marks a significant achievement for Equify Financial, and we are proud of the work we’ve done to get here. The future is exciting, and we look forward to building on this momentum in the months ahead.
