Sun Life Financial and Securcor Inc. establish inaugural securitization program in the U.S. with AvTech Capital.
The securitization facility has been established to provide funding for the lease of commercial equipment in the U.S.
TORONTO, ON and SALT LAKE CITY, UT, (January 21, 2015) – Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF), Securcor Inc. and AvTech Capital, L.L.C. today announced the establishment of a private securitization facility for US$50 million funded by Sun Life Assurance Company of Canada (“Sun Life”), the primary life insurance subsidiary of Sun Life Financial Inc. The facility is backed by commercial equipment leases originated by Avid Capital.
Securcor Inc. provided structuring support and is acting as the administrative agent on behalf of Sun Life.
The securitization facility draws on AvTech Capital’s equipment financing expertise and origination platform and Sun Life’s capital resources. It will enable AvTech Capital to expand its market share and establish Sun Life’s and Securcor’s presence in the U.S. equipment finance industry.
“The completion of our first equipment lease securitization program in the United States is a major milestone in our strategic vision,” said Neil Cameron, Senior Managing Director, Head of Private Securitization Finance, Sun Life Investment Management. “This move follows successful inroads we have made in the United States in other asset classes, but this is our first entry into the equipment finance sector. We have been exploring this space for a while and are very pleased to take this first step with the experienced team at AvTech Capital.”
“For us, it’s all about delivering effective financing solutions for our customers’ critical equipment needs,” said Scott Scharman, Chief Executive Officer, AvTech Capital. “And entering into this relationship with Sun Life, one of the global leaders in finance, provides us even more opportunities to expand our presence and take us to a new level. This facility provides a substantial source of liquidity to fund originations at a cost that allows us to more competitively allocate capital across a wider credit spectrum, while maintaining our strong underwriting and local decision-making authority that has made us so effective in providing flexible options for our customers.”
AvTech Capital will continue to service the underlying commercial equipment leases on behalf of Sun Life, and Securcor will continue to be responsible for ongoing program administration and reporting.
About Sun Life Investment Management
Sun Life Investment Management is the corporate brand name for an institutional investment arm of Sun Life Financial that includes operations of Sun Life Assurance Company of Canada that manages assets for its affiliated insurance companies, as well as Sun Life Investment Management Inc.
Sun Life Investment Management Inc. provides investment solutions for defined benefit pension plans and other institutional investors in Canada, specializing in private asset class funds and liability driven investment strategies. It is registered with the Canadian securities commissions and regulatory authorities as a Portfolio Manager, Investment Fund Manager, and Exempt Market Dealer.
Further information about Sun Life Investment Management Inc. and its offerings is available at www.sunlifeinvestmentmanagement.com.
About Sun Life Financial
Celebrating 150 years in 2015, Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth products and services to individuals and corporate customers. Sun Life Financial and its partners have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of September 30, 2014 the Sun Life Financial group of companies had total assets under management of $698 billion (Canadian). For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Securcor is a specialized Toronto-based structured finance operation, and leading service provider of customized securitizations, receivable and structured financing programs in Canada. With operations in Toronto and New York, Securcor provides customized securitization and structured financing services to mid and large sized companies. Securcor has a strong presence in the automotive dealer and automotive leasing industry. Securcor has key funding relationships with several leading Canadian and U.S. financial institutions.
Securcor has been in business for 15 years and currently has total assets under management of $550 million. To learn more, please visit www.securcor.com.
About AvTech Capital
AvTech Capital is a national equipment finance and leasing company based in Salt Lake City, Utah. AvTech Capital provides flexible, tailored equipment financing solutions to a diverse customer base throughout the United States. AvTech Capital funds commercial equipment leases for a wide variety of equipment and in nearly every industry, including healthcare, manufacturing, aircraft, technology, software, energy, construction, mining, and transportation, as well as specialized and non-traditional equipment.
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Senior Communications Specialist
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Chief Credit Officer
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