ATLANTA--(BUSINESS WIRE)--Access Point Financial, Inc., a direct balance sheet lender/servicer and capital markets enterprise, announced today its inaugural asset-backed term securitization. This transaction represents $183 million of fixed rate notes secured by a small portion of Access Point Financial, Inc.’s portfolio of renovation-capital expenditure (CapEx) loans made to owners of franchised and boutique hotel assets throughout the U.S.
Four classes of notes were issued in connection with this initial transaction, representing ratings of A+, BBB+, BB+ and BB-, respectively, from Morningstar Credit Ratings, LLC and A-, BBB, BB and B from Standard & Poor’s Ratings Services. Guggenheim Securities, LLC served as Sole Book Runner and Initial Purchaser with Amherst Pierpont Securities, LLC also serving as an initial purchaser. The transaction is comprised of 126 loans initially and represents a diversified stratification of brands and geographic locations.
“This securitization will produce significant positive impact on our lending business and the overall profile of our enterprise,” said Jon Hellbusch, managing director, Capital Markets, for Access Point Financial, Inc. “This finance strategy enables the company to further diversify and grow our funding base, as well as improve upon overall financing terms. By entering the securitization market, we will continue to provide even more relevant product offerings to hotel owners across North America in addition to expanding our portfolio of high quality loans. We are very pleased with the positive reception to the ABS issuance, which includes 11 well known institutional investors across the capital structure of the transaction.”
Access Point Financial, Inc. is the first hospitality lender to execute an A-rated securitization comprised solely of hotel assets. Earlier this year, the company increased its debt with various well known national and regional financial institutions, providing capacity to meet future objectives.
“APF and its investors have witnessed disciplined, yet impressive growth milestones since the company’s launch nearly four years ago, and this securitization is yet another benchmark of our team’s hard work and passion for achieving industry-pioneering results,” said Jon S. Wright, CEO, Access Point Financial, Inc. “Successfully executing a hospitality-only securitization will allow us to even better adapt our client solutions whilst ensuring APF remains the leading, go-to source for hospitality financing.”
About Access Point Financial
Based in Atlanta, Access Point Financial (APF) is a direct full-service lender servicing the hospitality industry. APF was formed by a private equity firm based in Greenwich, Ct. and the APF Management team. APF lends to qualified franchisees of major hotel brands and independent boutique hotels throughout the United States and Canada and is not an owner operator of hotel assets. For more information, visit www.accesspointfinancial.com.