Wingspire Equipment Finance Completes Inaugural Equipment ABS Issuance

BY Business Wire | CORPORATE | 09/04/24 10:21 AM EDT

TUSTIN, Calif.--(BUSINESS WIRE)-- Wingspire Equipment Finance, a large-ticket equipment finance company, announced the successful completion of its inaugural asset-backed securitization (ABS), WEF 2024-1. The transaction raised $201 million and was the first inaugural large-ticket equipment ABS to receive ratings from a major rating agency.

The transaction included five classes of notes, with the uppermost classes receiving the highest achievable ratings of F1+/K1+ and AAA from Fitch Ratings and Kroll Bond Rating Agency. The transaction was backed by a diverse portfolio of equipment loans and leases spanning numerous industries. The transaction was more than 3x oversubscribed, reflecting strong investor demand. The investment grade ratings and market enthusiasm were driven by the portfolio?s excellent credit performance, the management team?s cycle-tested experience, strong sponsorship, and the quality of Wingspire Equipment Finance?s originations platform, underwriting standards, and servicing capabilities. Over 20 prominent investors participated in the transaction.

?We are honored to be the first large-ticket equipment finance company to achieve a AAA rating from a major rating agency on an inaugural issuance,? said Eric Freeman, CEO of Wingspire Equipment Finance. ?This achievement not only highlights the quality of our portfolio and the expertise of our team but also sets a new standard in our industry. We are excited to build on our growth trajectory as we continue to deliver financing solutions that fit our clients? needs.?

David Wisen, CEO of parent company Wingspire Capital, added: ?The Wingspire platform is committed to supporting the capital needs of middle market companies and their sponsors. This transaction allows us to better serve our clients while simultaneously diversifying and expanding our investor base.?

Wells Fargo Securities served as the transaction's sole structuring agent and joint bookrunner. BofA Securities served as joint bookrunner. Deutsche Bank Securities and Texas Capital Securities served as co-managers. VedderPrice acted as legal counsel to Wingspire Equipment Finance and the issuer.

For more information about Wingspire Equipment Finance and its comprehensive finance solutions, please visit ef.wingspirecapital.com.

About Wingspire Equipment Finance:

Wingspire Equipment Finance is a leading provider of equipment financing solutions, committed to empowering businesses with flexible and innovative financial solutions. With a focus on client success and industry expertise, Wingspire Equipment Finance is dedicated to helping companies thrive by providing tailored financing options for their equipment needs.

About Wingspire Capital:

Wingspire Capital provides senior secured credit facilities of up to $200 million, and currently has over $1 billion in assets under management. It operates as two divisions: Wingspire Corporate Finance, which provides senior secured revolving lines of credit and term loans, and Wingspire Equipment Finance, which provides standalone equipment loans and leases. Industries financed include automotive, business services, consumer products, distribution, e-commerce & retail, financial services, food & beverage, healthcare, industrial, transportation & logistics, and technology applications.

Wingspire Capital is a portfolio company of Blue Owl Capital Corporation (OBDC) . OBDC is externally managed by Blue Owl Credit Advisors LLC, an indirect affiliate of Blue Owl Capital, Inc. (OWL) . Blue Owl Capital, Inc. (OWL) is a global alternative asset manager with over $192 billion of assets under management as of June 30, 2024. For further information about Wingspire Capital, visit www.wingspirecapital.com.

Source: Wingspire Equipment Finance

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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