Collateralized Bonds Provide European Investors Exposure to U.S. Credit Assets
NEW YORK, Sept. 15, 2015 /PRNewswire/ -- Aequitas Capital announced today the launch of two Luxembourg-listed securities, the firm's first expansion into international investment products.
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"These two new Luxembourg bonds target the specific needs of institutional European investors who seek well-structured, high-yielding credit for their portfolios. It also showcases our commitment to providing a wide range of alternative investment products to the marketplace," said Bob Jesenik, Chief Executive Officer and Chief Investment Officer, Aequitas Capital. "As our company continues to grow, expanding into international markets is a natural step in diversifying our portfolio and providing international investors exposure to our niche investment strategies in U.S. Private Credit."
Aequitas Income Opportunities S.A., the issuer of the bonds, is a Luxembourg-based securitization vehicle. The bonds are listed on the Luxembourg Stock Exchange, traded on the EuroMTF market and have assigned ISIN numbers. They are open to non-U.S. institutional investors and are eligible for UCITS funds.
Credit Bond A has a 6% coupon and five-year maturity that may be redeemed annually. Credit Bond B has an 8% coupon and three-year maturity with no early redemption option. Both are backed by consumer loans originated in the U.S. Aequitas Capital and its affiliates, with over $1 billion in assets under management, are funding a 10% first-loss equity piece in the Luxembourg vehicle, which aligns itself with investors. The bonds require a minimum investment of $1 million.
"Investors in Europe have a keen understanding of private debt and are signaling a strong interest in accessing U.S. credit strategies to diversify their portfolios and access yield," said Andy MacRitchie, Executive Vice President of Corporate Development, Aequitas Capital. "We specialize in originating niche private credit investments in the U.S. which are ideally positioned to provide excellent opportunities for offshore investors."
About Aequitas Capital
Founded in 1993, Aequitas Capital is a diversified financial services company that creates alternative investments including private equity, private credit, and specialty finance. The firm leverages its network and team of industry specialists to uncover opportunities in the traditionally underserved sectors of healthcare, education, and financial services. Aequitas helps its portfolio companies and strategic partners reach their goals by providing management expertise, technology infrastructure, and a network of support services.
For more information, please visit www.aequitascapital.com [http://www.aequitascapital.com/].
This press release is provided for information only. It does not purport to provide investment advice and should not be relied on for the purposes of any investment decision. It is not an offer to sell or the solicitation of an offer to purchase shares in the securities mentioned above. Any such offer or solicitation can only be made by means of a prospectus when it is available and only in those jurisdictions where it is permitted by law. An investment in the securities mentioned herein is speculative and is not suitable for all investors.
MEDIA CONTACT Dana Taormina
Telephone +1 (973) 850-7305
Web site: http://www.aequitascapital.com/