After closing its first two public deals this year, IKON Office Solutions will likely issue $1 billion in equipment leased-backeds annually, granted spreads remain favorable, said Treasurer Jack Quinn.

IKON's next deal, set for late in the first or early second quarter, would look similar in size and structure to the $700 million pricing in October, which was structured in five parts, with average lives ranging from approximately 0.5-years to 4.0-years.

Though Quinn said underwriters are chosen on a deal by deal basis, IKON's two public showings were managed by Lehman Brothers Inc.

"I think they were good executions," Quinn said. "The market was a little choppy in the spring when we came out. That was right after the Fed increased rates, or gave indications of a rate increase, so we got caught in that market, but the execution, all things considered, was good."

Quinn was pleased with IKON's latest deal. "That one went really well for us," he said.

Though IKON only entered the public market this year, the company has been financing through the bond market since 1994.

"We've traditionally financed our portfolio in the medium-term note market," Quinn said. "But based on where spreads were this year in that market compared to where they were in the asset-backed market, we decided we were going to issue asset-backed."

IKON recently filed twice with the Securities and Exchange Commision: a shelf for $2 billion in equipment-backed bonds, and a shelf for $1 billion in medium term bond notes.

"They're two separate shelf [filings]," Quinn explained. "Though they would both be used to finance the same portfolio of assets."

This sort of filing is becoming more common, he explained, as it allows a company access to multiple sources of financing and a flexibility to tap whichever market is most attractive at that time.

IKON is currently originating roughly $1 billion annually in equipment leases.

"We had a very significant period of growth and we're now in the process of consolidating numerous acquisitions that have gone through, so the growth has leveled off here and will probably be modest for this year as well," Quinn said.

"Our goal is to do about 70% of volume through our captive leasing subsidiary, and we're about at that level," he said. "For us it's a strategic fit, because we'd like to be able to go into a customer and provide one stop shopping. We'll provide you with your copier, we'll provide you with you service, we'll provide you with your financing, all in one location."

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