19:58:19 EDT Tue 30 Apr 2024
Enter Symbol
or Name
USA
CA



Chesswood Group Ltd
Symbol CHW
Shares Issued 18,145,771
Close 2023-10-30 C$ 5.80
Market Cap C$ 105,245,472
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Chesswood Group forms JV partnership with Wafra

2023-10-31 10:00 ET - News Release

Mr. Ryan Marr reports

CHESSWOOD GROUP LIMITED AND WAFRA INC. ANNOUNCE JOINT VENTURE

Chesswood Group Ltd. and Wafra Inc., a global alternative investment firm, have entered into an agreement forming a joint venture partnership between Chesswood subsidiary Pawnee Leasing Corp. and certain funds managed by Wafra.

The joint venture will invest in equipment finance leases and loans originated by Chesswood subsidiaries Pawnee and Tandem Finance Ltd., targeting up to $1-billion in total acquisitions. Chesswood and its operating subsidiaries will service the assets on behalf of the joint venture. Both Wafra funds and Pawnee will contribute equity to the joint venture, with Wafra funds owning up to 95 per cent. In connection with the formation of the joint venture, Chesswood has agreed to issue to Wafra funds warrants to purchase 2,067,250 Chesswood common shares at a $10 exercise price, subject to a vesting schedule tied to the closing of acquisitions by the joint venture.

The joint venture will enable Chesswood's subsidiaries to continue growing originations to meet market demand and to evaluate new opportunities that leverage Chesswood's infrastructure and decades of experience and success in the commercial finance sector.

"We are pleased to partner with the management of Chesswood, Pawnee and Tandem and look forward to growing the joint venture meaningfully," said Edward Tsai, managing director at Wafra. "As long-term-oriented investors, we seek to form durable partnerships with experienced industry leaders like Chesswood. We recognize the attractive fundamentals of equipment finance, adding it to Wafra's portfolio of high-quality real-asset-backed investments."

"We are excited to embark on a long-term partnership with Wafra focused on the expansion of Chesswood's business in the United States. Wafra and Chesswood share a common vision of the opportunities for growth in the U.S. asset-based finance market that leverages the infrastructure and know-how of both organizations. In addition, this agreement builds on Chesswood's strategic focus to grow Chesswood's asset management business and increase fee-based revenue," said Ryan Marr, president and chief executive officer of Chesswood.

The issuance of the warrants is subject to receiving conditional approval from the Toronto Stock Exchange. The terms of the warrants (other than the exercise price) will be included in a subsequent news release.

About Chesswood Group Ltd.

Chesswood Group is a Toronto-based holding company whose subsidiaries engage in the business of specialty finance (including equipment finance throughout North America and vehicle finance and legal sector finance in Canada), as well as the origination and management of private credit alternatives for North American investors.

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