COLUMBUS, Ohio – December 15, 2005 – Red Capital Markets, Inc., (MEMBER FINRA/SIPC) ("Red"), the investment banking/broker-dealer arm of RED CAPITAL GROUP, recently advised Brooke Credit Corporation on its fifth term securitization. Brooke Securitization Company V, LLC recently issued $51.5 million of Notes backed by loans to small-to-medium sized independent insurance agencies primarily for agency acquisitions and debt consolidations. The two classes of floating rate notes are credit enhanced by excess spread and over-collateralization.
Brooke Credit Corporation is located in Overland Park, Kansas, and is a wholly owned subsidiary of Brooke Corporation (NASDAQ: BXXX). Established in 1988, Brooke Credit Corporation was formed to provide loans to the growing market of independent insurance agents, a group of borrowers that have been underserved by traditional lenders. Brooke Credit Corporation is able to make creditworthy loans to these borrowers because of its specialized underwriting capabilities and because of Brooke Franchise Corporation's expertise in making insurance agent franchisees more successful.
The Asset Backed Securitization Group ("ABS Group") within Red Capital Markets, Inc. served as Structuring Agent on this and four previous Brooke Credit Corporation securitization transactions which were placed with several financial institutions. To date, Red’s ABS Group has advised Brooke Credit Corporation on securitizations totaling $135 million of securities backed by loans to independent insurance agencies which has allowed Brooke Credit Corporation to diversify its funding sources and monetize a portion of its balance sheet assets.
Red’s ABS Group provides debt capital and investment banking services to a wide variety of organizations that accumulate financial assets, including financial institutions, finance companies and equipment leasing companies. To meet the many demands of its customers, Red’s ABS Group supplies capital in the form of senior secured warehouse lines of credit, senior liquidity facilities and subordinated mezzanine investments, while also offering investment banking expertise which includes structuring, placement and financial advisory services. |
