Garrigues has represented Percent Technologies (formerly known as Cadence Group), as an investor, in a $10 million USD securitization bond financing in favor of Leasy, a Peruvian car rental fintech, advised by Rebaza Alcázar & De las Casas.
The private securitisation is in addition to the $25 million USD previously raised independently by Leasy for its growth. Settlement of the bonds was signed on 30 September and occurred in November 2022.
This transaction marks Leasy’s first securitisation. The notes will not be registered under the Peruvian Securities Act, or any other securities laws.
The deal was structured as a balance sheet transaction in which Leasy expects to transfer approximately up to $10 million of auto leases (subject to specific criteria) to a special purpose trust and receive the proceeds from the issuance and sale of the notes.
The advisory involved tailoring the securitisation of private bonds to the particularities of a private credit start-up. It was also designed as an off-balance sheet transaction for the issuance of bonds by a special purpose trust, secured by an exclusive pool of vehicle loans, which also provided for certain enhancements, such as the pledging of assets.
Diego Harman, lead partner in the transaction, mentioned: “With a new fundraising round, Percent will help accelerate the development of Leasy’s business and, probably, of other companies in the Peruvian market. User expectations for the purchase of vehicles are evolving, and timing is right for this type of fintech to lead the way in providing alternative financing solutions.”
“This is the third fintech-related venture debt financing, in a securitization format, that Garrigues has closed in 2022. We expect at least the same level of activity for 2023 and are excited with future prospects in this growing market,” added the firm’s principal associate, Miluska Gutiérrez.
Leasy, founded in 2018, is a startup that offers vehicle financing to ride-hailing drivers in Latin America through a subscription model, granting access to the hundreds of thousands of gig-economy workers who today are unable to obtain financing from traditional financial institutions. Since the start of its operations, the company, which has an alliance with Uber, has achieved considerable growth in the Peruvian market. Since then and until 2021, they have granted more than 500 vehicle loans. Moreover, in Peru alone, Leasy has a waiting list of more than 1,500 people for its financing.
Percent is a private credit marketplace for accredited investors in the United States. Through its marketplace, it connects corporate borrowers, underwriters and accredited investors to efficiently raise debt capital, obtain high-quality deal flow and uncover investment opportunities.
Rebaza Alcázar & De las Casas’ team included partner Víctor Valdez and associates Fiorela Ccahua and Valeria Sánchez.
Garrigues’ team included partner Diego Harman (pictured left) and principal associate Miluska Gutiérrez Vega (pictured right).