CPE Media News (3/25/2019) – Fairstone Financial Inc., a portfolio company of Värde Partners and J.C. Flowers & Co. LLC, has closed inaugural asset-backed security (ABS) transaction totalling $322.44 million. The deal marks the first-ever personal loan ABS transaction in Canada and signals the creation of a new asset class in this market, said Fairstone.
Montreal based Fairstone Financial, formerly CitiFinancial Canada, is a Canada’s largest non-bank provider of lending solutions for near-prime and non-prime borrowers. As at December 31, 2018, the company had over $2.9 billion in assets on a consolidated basis. The Company currently serves over 300,000 customers with 235 branch locations in communities across 10 provinces and 2 territories in Canada.
Funds managed by affiliates of Värde Partners and J.C. Flowers & Co. LLC, along with Abu Dhabi Investment Council, acquired Fairstone Financial in March 2017.
photo credit: Fairstone Financial
News Release
Fairstone Financial Inc. Closes Inaugural $322.44 Million ABS Transaction Français
Oversubscribed offering also marks first personal loan ABS transaction in the Canadian market
MONTREAL, March 22, 2019 /CNW Telbec/ – Fairstone Financial Inc. (“Fairstone”), Canada’s largest non-bank provider of responsible lending solutions for near-prime and non-prime borrowers, announced today the completion of its inaugural ABS transaction totalling $322.44 million. The deal marks the first-ever personal loan ABS transaction in Canada and signals the creation of a new asset class in this market.
The transaction included:
$225,000,000 Class A Notes rated AAA(sf) by DBRS and Aa2(sf) by Moody’s
$40,750,000 Class B Notes rated AA(sf) by DBRS and A3(sf) by Moody’s
$35,430,000 Class C Notes rated A(sf) by DBRS and Ba1(sf) by Moody’s
$21,260,000 Class D Notes rated BBB(high)(sf) by DBRS and Ba3(sf) by Moody’s
“Our first ABS transaction is a reflection of the work we do each day to provide Canadians with responsible lending solutions as well as our considerable experience in originating, underwriting and servicing personal loans,” said Scott Wood, Chief Executive Officer of Fairstone. “This will enable future growth and assist more Canadians in accessing responsible credit in the near-prime space.”
“We’re pleased to see very strong investor interest and support for this asset class, which resulted in a significantly oversubscribed transaction through all tranches,” said Oona Robinson, Chief Financial Officer of Fairstone. “We look forward to continued growth in 2019.”
RBC Capital Markets acted as the Structuring Lead and joint bookrunner, alongside National Bank of Canada Financial Markets, with Citigroup and Credit Suisse Securities (USA) LLC supporting as co-managers.
About Fairstone
Fairstone is Canada’s largest non-bank provider of responsible lending solutions for near-prime and non-prime borrowers with, as at December 31, 2018, over $2.9 B in assets on a consolidated basis. Fairstone, including through its predecessors, has over 95 years of history in providing Canadians with access to responsible credit. The Company currently serves over 300,000 customers with 235 branch locations in communities across 10 provinces and 2 territories in Canada. Fairstone has two key business lines: direct consumer lending (personal loans and mortgages) and indirect consumer lending (retail and automotive financing via partner networks). Headquartered in Montreal, Fairstone is privately-held by an investor group led by funds managed by affiliates of J.C. Flowers & Co. LLC and Värde Partners. More at Fairstone.ca.
SOURCE Fairstone Financial Inc.
For further information: Fiona Story, Vice President, Corporate Communications, fiona.story@fairstone.ca, T: 514 394-2400 x6306031
Related Links