CDPQ backs Laurentian’s Northpoint Commercial Finance acquisition

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By Ted Liu

Laurentian Bank of Canada (TSX: LB) has reached a definitive agreement to acquire Alpharetta, Georgia based NCF Holdings, LLC (Northpoint Commercial Finance), a leading US and Canadian inventory finance lenders with a portfolio of approximately $1.2 billion. Financial terms were not disclosed.

The transaction is expected to close before the end of fiscal 2017.

To fund the acquisition, Laurentian Bank has engaged TD Securities Inc., BMO Capital Markets and RBC Capital Markets as lead-agents for a bought deal of 3,880,000 subscription at a price of $51.70 per subscription receipt for gross proceeds of $200,596,000.

Laurentian Bank has also entered into a subscription agreement with Caisse de dépôt et placement du Québec (CDPQ) for a con-current private placement, on a prospectus-exempt basis, of 483,560 subscription receipts at the offering price for gross proceeds of $25,000,052.

The bought deal and private placement are expected to be on or about May 26, 2017.

With approximately 90 employees, Northpoint Commercial Finance has a leading presence in financing a range of products across major industries through relationships with hundreds of manufacturers and thousands of dealers across the US and Canada. Northpoint offers diversified financial solutions such as inventory lending and floor plan finance. As a knowledgeable lender, Northpoint offers a wide array of program structures to meet the needs of original equipment manufacturers, distributors, resellers, and dealers in a variety of commercial product industries. The team offers a creative, flexible and personal approach combined with innovative technologies, and streamlined processes.

photo credit: Northpoint Commercial Finance