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Commercial Equipment Finance closes $90.9M financing transaction

Commercial Equipment Finance Inc. (CEFI), an independent commercial equipment finance company headquartered in Puerto Rico, recently closed a $90.9 million asset-backed security (ABS) transaction.

The proceeds will be used to pay down existing warehouse lines and for general corporate purposes.

This transaction represents CEFI’s inaugural securitization. The deal includes four classes of equipment contract-backed notes, rated AA (sf) through BB (low) (sf) by DBRS Morningstar. KeyBanc Capital Markets (KBCM) acted as Sole Structuring Agent and Bookrunner.

“This landmark financing is a true testament of CEFI’s business model, portfolio performance track-record and experienced team,” said Ricardo A. Ríos-Bolivar, president of CEFI.

The company was able to access capital markets with the support of KBMC, Quadrant Financial Group, RiskOne Consulting, Chapman & Cutler LLP, O’Neill & Borges LLC, and Avila Rodriguez Mena & Garro LLP.

“As a financial and equipment leasing entity based in Puerto Rico, this milestone is very important for CEFI as a company and for the commercial environment of the island,” he said.

CEFI also had the support of FirstBank and Key Bank Specialty Lending Group as business partners, said Ríos-Bolivar.

“We’re proud to be able to contribute to the growth and development of our clients, which in turn has a positive impact on the economy,” said Aurelio Alemán, president of FirstBank.

Meanwhile, Andrew Yuder, managing director and group head of Asset-Backed Securitization at KeyBanc Capital Markets, said “we’re thrilled with the outcome and execution for CEFI’s inaugural securitization led by CEFI’s extraordinary management team. The company’s stellar experience, performance and growth in the commercial equipment leasing space will propel CEFI into becoming a programmatic ABS issuer.”

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This story was written by our staff based on a press release.

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