When Amur Equipment Finance Inc. recently announced the closing of its eighth term securitization of $226.3 million, it represented another successful outcome aided by the expertise of Key.
The relationship started years ago
This relationship started in 2013 with a $50 million line of credit. Early on, Key was given co-manager roles in AmurEF’s first few asset backed securities (ABS) issuances. By 2017, as the company grew its originations platform, it tapped the ABS market more frequently and mandated Key as the sole lead arranger and underwriter in all its ABS issuances.
The AmurEF and Key relationship now has multiple touchpoints beyond the bank warehouse credit facility, including treasury management, derivative trades and ABS bond issuance.
“We have a long history with AmurEF,” said Chris Kytzidis, managing director, speciality finance lending, at Key. “At one time, we were their only facility. Now, there are three.”
“KeyBanc Capital Markets (KBCM) has served as structuring agent and sole lead manager on Amur’s last four securitizations,” said Andy Yuder, managing director and ABS group head. “AmurEF has awarded these mandates to KBCM as a result of the outstanding execution the KBCM ABS team has delivered to the company. This has been an excellent relationship, which we look forward to continuing well into the future.”
Strong platform attracts interest
AmurEF, based in Grand Island, Nebraska, stated in its announcement of the transaction that the notes, secured by small- and mid-ticket equipment loans and leases, represented a strong market response, especially given the uncertainty created by the COVID-19 pandemic.
“The overwhelming investor interest is a powerful affirmation of the performance and diversity of our originations, the quality of our portfolio, and the strength of our platform and business model,” said Kalyan Makam, executive vice president for AmurEF.
KBCM served as structuring agent, bookrunner and lead manager, with Siebert Williams Shank servicing as co-manager. DBRS Morningstar rated all classes of notes and Moody’s rated the Class A-1 through Class D notes.
AmurEF is deeply committed to providing customized financial solutions to America’s small businesses, the company said. It has continued to provide financing to new and existing customers throughout the COVID-19 pandemic, and its market-leading customer service team has worked diligently to provide customers with the flexibility they need to navigate a challenging business environment. In addition, AmurEF became an SBA-licensed Paycheck Protection Program Lender to provide small businesses with needed liquidity to support their payrolls during this period.
Market responds during challenging time
In the leasing world, a lot of small businesses asked for deferments as a result of COVID-19, Kytzidis said, noting that AmurEF came to Key in March after the lockdown to ask for an increase to their credit facility, and Key provided it.
“This was a very difficult time for any issuer,” Kytzidis added. “AmurEF was successful in attracting investors to do the deal, which is in large part because of our KBCM team.”