Avtech Capital Achieves Major Milestone with First Equipment ABS Offering

Avtech Capital Completes Inaugural Equipment ABS Issuance

Avtech Capital, LLC, a prominent player in the equipment finance and leasing sector, proudly announced the completion of its first asset-backed securitization (ABS) transaction, designated as AVT 2026-1. This groundbreaking deal raised an impressive total of $141 million, consisting of four distinct classes of notes, marking a significant achievement for the company.

Strong Demand and Impressive Ratings

The issuance underlines the confidence of institutional investors, as it was met with overwhelming demand and was significantly oversubscribed. Notably, the senior tranche of this transaction garnered a prestigious AAA (sf) rating from the Kroll Bond Rating Agency, a critical factor in enhancing investor trust and confidence.

Diverse Backing Portfolio

The financial backing for the securitization comes from a portfolio of commercial equipment leases that span a wide array of industries, showcasing Avtech's extensive reach and the varied types of equipment financed. This diversity not only mitigates risk but also attracts interest from a broad spectrum of institutional investors.

Chris Scharman, the Chief Executive Officer of Avtech, remarked on the importance of this accomplishment, stating, "With the completion of AVT 2026-1, we've reached an important milestone for our platform. The positive reception from institutional investors reflects the quality of our origination, underwriting, and servicing capabilities."

Support from Key Partners

The execution of this successful transaction was made possible through a collaborative effort. Capital One Securities, Inc., acting as the sole structuring agent and bookrunner, played a critical role in bringing this transaction to fruition. Additionally, Chapman and Cutler LLP served as legal counsel to Avtech, ensuring legal compliance and guidance throughout the process.

Chris Emery, President of Avtech, expressed gratitude towards the banking partners and legal advisors, highlighting their contributions to this historic issuance. “We are proud of this inaugural issuance and grateful to all who supported us in executing a successful transaction,” he stated, emphasizing the collaborative nature of their success.

Future Growth and Trust in Management

Eric Shea, Senior Managing Director and Head of Structured Products at Capital One Securities, also noted the market's strong endorsement of Avtech's management team. “This successful issuance demonstrates the market's confidence in Avtech's management team and platform, and we look forward to supporting their future growth,” he affirmed.

As Avtech Capital continues to expand its offerings, its successful entry into the securitization market strengthens its position as a leader in providing effective equipment financing solutions to businesses across the United States. The company caters to various sectors, including healthcare, manufacturing, technology, and more. By diversifying their asset base, Avtech enhances its service delivery capabilities, ensuring that they meet the equipment financing needs of small, medium, and large enterprises alike.

For more information and updates on Avtech Capital's financing solutions, visit their official website. As the company embarks on this promising journey, stakeholders and investors alike can look forward to seeing how Avtech Capital leverages this milestone to foster future growth and innovation in the equipment financing market.

Safe Harbor Statement

It is worth noting that this announcement may contain forward-looking statements. These conversations around future expectations are subject to uncertainties and risks that could cause actual results to vary. As such, the company urges investors to maintain caution and to understand that forward-looking statements are not guarantees of future performance.

With the successful completion of its inaugural ABS issuance, Avtech Capital sets a robust foundation for scaling its operations and enhancing its service offerings for clients seeking equipment financing solutions. The future looks bright for Avtech as it positions itself within the rapidly evolving finance landscape.