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