South Street Securities Funding completes $90m private placement
04 January 2022 US
Image: Choat/stock.adobe.com
South Street Securities Funding, a subsidiary of South Street Securities Holdings, has completed a US$87.5 million private placement of 6.25 per cent of five-year senior unsecured notes.
The company, which has received an investment grade BBB by Kroll Bond Rating Agency, will use the proceeds of the notes to refinance existing debt and provide expansion capital to South Street Securities Funding’s broker-dealer subsidiary.
Speaking on the announcement, James Tabacchi, president and CEO of South Street Securities Holdings, says: “We are delighted to complete this capital raise with the help of Piper Sandler and AmeriVet. This allows us to increase our capital base and bolster various growing businesses, particularly TBA mortgage hedging and equity finance. Market conditions in the near future appear to be favorable to utilise this fresh capital in value accretive business expansions.”
Karsten Berlage, CFO of South Street Securities Holdings, adds: “Over the last few years, our company has transitioned from net interest margin dependency as a repo dealer to a broader business mix of fee and commission-based revenues.
“A solid capital base allows us to address increasing margin requirements by clearing houses and maintain a strong balance sheet. We look forward to fostering new relationships with insurance companies, community banks, hedge funds, REITs and other institutional investors who have participated in the note offering.”
The company, which has received an investment grade BBB by Kroll Bond Rating Agency, will use the proceeds of the notes to refinance existing debt and provide expansion capital to South Street Securities Funding’s broker-dealer subsidiary.
Speaking on the announcement, James Tabacchi, president and CEO of South Street Securities Holdings, says: “We are delighted to complete this capital raise with the help of Piper Sandler and AmeriVet. This allows us to increase our capital base and bolster various growing businesses, particularly TBA mortgage hedging and equity finance. Market conditions in the near future appear to be favorable to utilise this fresh capital in value accretive business expansions.”
Karsten Berlage, CFO of South Street Securities Holdings, adds: “Over the last few years, our company has transitioned from net interest margin dependency as a repo dealer to a broader business mix of fee and commission-based revenues.
“A solid capital base allows us to address increasing margin requirements by clearing houses and maintain a strong balance sheet. We look forward to fostering new relationships with insurance companies, community banks, hedge funds, REITs and other institutional investors who have participated in the note offering.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
