First Capital Issues $100 Million in Secured Bonds in its Second Term Securitization
BOCA RATON, FL and NEW YORK, NY, June 21, 2011 – First Capital, a specialized commercial finance company, announced today that it has issued $100 million in floating rate secured bonds in its second term securitization.
Guggenheim Securities served as the initial purchaser in the Rule 144A private placement that closed on June 14th. The deal included an $89 million senior tranche rated AA by DBRS and a subordinate tranche rated BBB.
This securitization comes a little more than a year after First Capital’s initial $100 million securitization and an equity investment from H.I.G. Capital. Since the completion of those two transactions, First Capital has provided over $380 million in new credit lines to small and mid-sized businesses throughout the United States.
Lee Wilson, President and CEO of First Capital, remarked, “The past year has been remarkable. We increased our working capital lending to small and mid-sized companies in a market where many lenders pulled back.” Wilson added, “We appreciate the market confidence in our business model as demonstrated by this transaction.”
First Capital provides working capital financing typically ranging from $3 million to $15 million primarily to small and middle-market business owners with annual sales ranging from $10 million to $100 million. Credit facilities are in the form of Asset-Based Loans or Factoring arrangements. First Capital is one of the largest independent Asset-Based working capital lenders in the United States.
“We are very pleased with the structure and pricing of the debt that Guggenheim Securities placed for us,” said Glen Stein, Chief Capital Markets Officer of First Capital. “This second securitization advances our strategic funding goals. We expanded our sources of capital and diversified our group of lenders by issuing this debt to institutional bond buyers. The 2.25 year average maturity helps us extend and stagger our debt maturities.”
"In the Asset Backed Securities market, First Capital has become a premier issuer of bonds secured by asset-based loans and factoring,” said Matthew Perkins, Managing Director of Guggenheim Securities. “We welcomed the opportunity to work with First Capital on their most recent offering."
The notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Act”), and may not be offered or sold in the United States without registration under the Act or pursuant to an applicable exemption from such registration. This press release does not constitute an offer to sell, or the solicitation of offers to buy, any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About First Capital
First Capital is a specialized commercial finance company positioned to enable entrepreneurs to achieve their goals through working capital lines of credit typically ranging from $3-$15 million in the form of Asset Based Lending and Factoring. A team of approximately 200 professionals is committed to understanding our clients’ business plans and providing timely and consistent funding decisions. Our size and scope make First Capital the preferred working capital partner -- small enough to build deep personal relationships and big enough to deliver the ideal solutions. Our commitment is to build long-lasting, mutually-beneficial relationships with clients and their advisors. First Capital differentiates itself from competitors with a performance-based culture and values-driven focus that provides the foundation for our growth and will continue to guide our vision for the future. Headquartered in Boca Raton, Florida, the firm has additional full-service offices in New York, Los Angeles, Atlanta and Oklahoma City with sales offices located across the United States. For more information, please visit www.firstcapital.com.
About Guggenheim Partners and Guggenheim Securities
Guggenheim Partners is a privately held global financial services firm with more than $100 billion in assets under supervision, including the management of assets in excess of $80 billion. The Firm provides investment management, investment banking and capital markets services as well as insurance and investment advisory solutions for institutions, corporations, governments and agencies, investment advisors, family offices and individuals. Guggenheim Partners is headquartered in New York and Chicago and serves clients from 22 offices in nine countries. For more information, please visit www.guggenheimpartners.com.
Guggenheim Securities is a wholly owned subsidiary of Guggenheim Partners, is registered as a broker-dealer with the Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority, Inc. and the NASDAQ Stock Market, Inc. Guggenheim Securities seeks to provide our clients with state-of-the-art, best-of-breed independent and conflict-free financial advisory and investment banking services in connection with M&A transactions and other extraordinary corporate transactions, assists our clients in connection with raising debt and equity capital in both the private and public capital markets, engages in various sales and trading and other capital markets activities and provides fixed income and equity research to a wide variety of institutional investors.