By Devika Patel
Knoxville, Tenn., Sept. 14 – A-Mark Precious Metals, Inc. subsidiary AM Capital Funding, LLC settled a $100 million private placement of notes due Dec. 15, 2023 in two tranches. Morningstar Credit Ratings rated the class A notes AA and class B notes BBB.
The company sold 4.98% secured senior term notes, series 2018-1, class A, for $72 million and 5.98% secured subordinated term notes, series 2018-1, class B, for $28 million.
The notes are backed by precious metals and loans secured by precious metals.
Proceeds will be used to expand the loan portfolio of A-Mark’s subsidiary Collateral Finance Corp.
“This financing represents the most innovative financing structure that A-Mark has established to date, uniquely providing us with a platform of long-term capital that we can expand on in the future,” said chief executive officer Greg Roberts in a news release.
“Over the last two years, we successfully grew CFC [Collateral Finance Corp.]’s finance book by 75% off A-Mark’s balance sheet, and now with this capital infusion specifically earmarked for CFC, we can more aggressively expand this business to new levels.”
A-Mark is a precious metals dealer based in Santa Monica, Calif.
| Issuer: | AM Capital Funding, LLC
|
| Issue: | Secured senior term notes, secured subordinated term notes
|
| Amount: | $100 million
|
| Maturity: | Dec. 15, 2023
|
| Settlement date: | Sept. 14
|
| Distribution: | Private placement
|
|
|
| Series 2018-1, class A notes
|
| Description: | Secured senior term notes
|
| Amount: | $72 million
|
| Coupon: | 4.98%
|
| Rating: | Morningstar: AA
|
|
|
| Series 2018-1, class B notes
|
| Description: | Secured subordinated term notes
|
| Amount: | $28 million
|
| Coupon: | 5.98%
|
| Rating: | Morningstar: BBB
|
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