- 1RCER 2026-1 totals $132.9M in notes backed by loans and leases.
- 2The $112.6M senior tranche is rated AA and priced at the tight end of guidance.
- 3The deal drew 18 unique investors; Brean Capital was placement agent.
Regents Capital Corporation, a Costa Mesa, California equipment finance firm, has closed its first asset-backed securitization. The offering, RCER 2026-1, consisted of $132.9 million in notes backed by a portfolio of loans and leases the company originated.
Deal structure
The collateral spans construction, manufacturing, transportation, healthcare and industrial services. The transaction included four classes of notes rated by Morningstar DBRS. The anchor was a $112.6 million senior tranche rated AA, which made up over 84% of the total bonds and priced at the tight end of guidance. The offering was well oversubscribed, with demand from 18 unique investors. Brean Capital, LLC served as sole structuring and placement agent.
What management said
CEO and co-founder Don Hansen said many of the investors the team met in person placed orders for the inaugural deal and that Regents hopes to build an investor following. President and co-founder Dennis Odiorne called the reception a meaningful step in its capital markets strategy, adding that ABS is a new financing channel alongside warehouse financing, note issuances and syndication to bank partners.
The company
Founded in 2013, Regents provides equipment leasing and financing to middle-market borrowers, and says it has averaged 35% year-over-year funded volume growth. More information is at Regents Capital.
Why it matters
The deal gives Regents a capital markets channel it did not have before. Management described ABS as a durable new financing source that sits alongside its existing warehouse lines, note issuances and syndication to bank partners, rather than replacing them.
The pricing and demand details, a tight-end senior tranche and an oversubscribed book from 18 investors, suggest investors were receptive to a first-time issuer of equipment loans and leases. Regents also pointed to its growth, with funded volume averaging 35% year-over-year increases since its founding in 2013.
Source reporting: deBanked.
