Fairstone Financial Inc. Closes C$351.11 Million ABS Transaction

MONTREAL, Oct. 16, 2020 /PRNewswire/ – Fairstone Financial Inc. («Fairstone»), Canada’s largest non-bank provider of responsible lending solutions for near-prime borrowers,…

MONTREAL, Oct. 16, 2020 /PRNewswire/ – Fairstone Financial Inc. («Fairstone»), Canada’s largest non-bank provider of responsible lending solutions for near-prime borrowers, announced today the completion of its second asset-backed securities («ABS») transaction totalling C$351.11 million. The securities were offered in Canada and in the U.S. on a Rule 144A basis.

The transaction included:

  • C$245,000,000 Class A Notes rated AA (sf) by DBRS and Aa2(sf) by Moody’s
  • C$44,380,000 Class B Notes rated A(sf) by DBRS and A2(sf) by Moody’s
  • C$38,590,000 Class C Notes rated BBB(high)(sf) by DBRS and Ba1(sf) by Moody’s
  • C$23,140,000 Class D Notes rated BBB(sf) by DBRS and Ba3(sf) by Moody’s

«Fairstone continues to keep credit open to Canadians, using our deep experience working with the near-prime customer segment to address their individual circumstances and needs,» said Scott Wood, President and Chief Executive Officer of Fairstone. «This transaction will enable us to further expand our business and capitalize on our present momentum and future opportunities. Furthermore, our continued success in the capital markets demonstrates our ability to successfully operate our business through varying economic conditions.»

«We continue to see ongoing investor interest and support for Fairstone with strong demand leading to attractive fixed rates in this offering. ABS transactions remain an ongoing component of our capital structure plans,» said Shiraz Ahmed, Senior Vice-President and Chief Financial Officer of Fairstone.

National Bank Financial Inc./National Bank of Canada Financial Inc.  acted as the Structuring Lead and joint bookrunner, alongside RBC Dominion Securities Inc./RBC Capital Markets, LLC, with Barclays Capital Inc., BMO Nesbitt Burns Inc./BMO Capital Markets Corp., Citigroup Global Markets Canada Inc./Citigroup Global Markets Inc. and Scotia Capital Inc./Scotia Capital (USA) Inc. supporting as co-managers.

About Fairstone

Fairstone is Canada’s leading non-bank provider of responsible lending solutions for near-prime borrowers with over $3 billion in assets on a consolidated basis. Fairstone, including through its predecessors, has close to a 100-year history of providing Canadians with access to responsible credit. The Company has two key business lines: lending directly to consumers through its branch network and online; and financing consumer retail and car purchases through retailers and dealerships. 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.

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SOURCE Fairstone Financial Inc.