First Capital 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.
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.
"The past year has been remarkable," said Lee Wilson, President and CEO of First Capital. "We increased our working capital lending to small and mid-sized companies in a market where many lenders pulled back."