nextgear Capital, Inc. Renews $1.1 Billion Financing Securitization, Closes $500m Bond Offering

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Renewed credit facility and securitized term note reinforces NextGear Capital as a strong lending partner for independent dealers

NextGear Capital, a Cox Automotive brand, has completed the renewal of its $1.1B financing facility on August 31, 2021. In addition, the company recently closed its latest $500M bond offering in July. 

NextGear Capital’s renewed $1.1B line of credit with industry-leading banks provides a variable funding mechanism to support the seasonal and growth needs of its dealer clients. The bond offering is NextGear Capital’s 13th asset-backed security (ABS) issuance since its initial offering in 2014. Together, they make NextGear Capital one of the most stable financing sources in the marketplace for independent dealers.

“These recent transactions preserve our operating flexibility while allowing us to continue serving the floor plan financing needs of independent dealers,” said Dave Horan, chief financial officer at NextGear Capital. “Our 20,000-plus dealer clients can gain greater confidence that their lender is well established in the capital markets and has a reliable source of capital to fund their inventory needs today and in the future.” 

This $500M bond offering was the first for NextGear Capital since March 2020 and represents the first floor plan ABS transaction issued in 2021 YTD. MUFG Securities Americas Inc. served as administrative agent on the bank conduit facility, and RBC Capital Markets was the lead structuring agent and underwriter for the securitized term note offering.