Commercial Credit Files for IPO

By Chris Lange Published Mar 20, 11:30AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Commercial Credit Inc. has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). As this was the first filing, there was no pricing information, but the offering is expected to be valued up to $100 million. The company will list on the New York Stock Exchange under the symbol CCR.

J.P. Morgan and Keefe, Bruyette & Woods are serving as joint book-running managers and as representatives of the underwriters for the offering.

Commercial Credit is an independent financial services company engaged in the financing of commercial equipment. The company provides secured loans and leases to businesses that operate in the construction, fleet transportation and waste industries in the United States and Canada.

Its target customers are primarily middle-market, family-owned businesses. The company’s equipment includes mobile cranes, earth moving and paving equipment, over-the-road trucks and trailers, waste collection trucks and related equipment that are produced primarily by nationally recognized manufacturers.

Note that Commercial Credit does not rely on marketing programs with equipment vendors or manufacturers to source new business.

Commercial Credit was founded in October of 2004. It has directly originated $1.9 billion of loans and leases. At the end of December 2014, the company had a finance receivables portfolio of $611.5 million, consisting of over 3,900 loans and leases to more than 1,800 customers.

Commercial Credit typically originates loans and leases that range from $50,000 to $2.5 million per transaction. For the nine months ended December 2014, the average new contract was roughly $209,000, and had an original term of 46 months with a yield of 9.8%. The company retains all of its originations and holds them to maturity.

The company intends to use the net proceeds from this offering to retire the outstanding aggregate principal amount of its 12.75% senior subordinated notes due 2018 in the amount of $33 million, plus any interest and fees, and for working capital and general corporate purposes. Commercial Credit may also pay down its credit facilities with the proceeds.

ALSO READ: Should GoDaddy Be Worth $3 Billion at Its IPO Launch?

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.