North Mill Closes Largest Securitization in Company History at Nearly $236.6MM

North Mill Equipment Finance closed its fourth commercial equipment backed securitization, NMEF Funding 2021-A. The $236.588 million ABS issuance, North Mill’s largest, featured five tranches of notes, achieving a roughly 86% advance rate through the Class D note.

The securitization raised capital from 23 total investors, representing enhanced diversification relative to the 10 total investors in North Mill’s previous issuance (NMEF 2019-A). North Mill retained eight out of the 10 investors from NMEF 2019-A and brought in 15 first-time investors in the North Mill shelf.

The transaction featured North Mill’s first ever money-market tranche (2a7 eligible), which, coupled with strong investor appetite, facilitated North Mill in decreasing its all-in cost of funds by roughly 140 bps relative to its prior issuance. The $236.588 million transaction was backed by $275 million in equipment loan and lease contracts, $45 million of which will be contributed via a three-month prefunding period post-close.

“This transaction is a veritable game changer and clearly demonstrates the confidence the market has in the ability of North Mill to originate and service a portfolio of quality small-ticket loans and leases. It will have a resounding impact on our profitability this year and beyond,” Mark Bonanno, president of North Mill Equipment Finance, said. “None of this would have been possible without the dedication, passion and hard work from the team at North Mill.”

Truist Securities and Deutsche Bank Securities served as joint bookrunners for the transaction. The notes were rated by Kroll Bond Rating Agency.

Headquartered in Norwalk, CT, North Mill Equipment Finance is an independent commercial equipment lessor that provides small ticket equipment financing solely through the broker channel.

Editor’s Note: This article was updated to incorporate information from an updated press release from North Mill Equipment Finance.